Article Image
News Link • Economy - Economics USA

Regulators Ask Bank of America About Contingency Plans

• NakedCapitalism.com/
 
The Feds appear to be taking the risk that Bank of America might go wobbly seriously, but are they taking it seriously enough? We quoted Tom Adams on the matter of the Buffett investment in the Charlotte bank: This is being spun as good news for BofA but it is really a sign of just how much trouble they are in. This is step one of their rescue. The powers that be felt they could not wait any longer with BofA so damaged, and that a run or crisis was one bad news day away (earlier this week I predicted some rescue action within 2-3 weeks). Step two, some additional lifeline will show up in September. Step three will be a sale of Merrill. Some readers rejected the idea that a Merrill separation would ever be in the cards, given that Bank of America has made a great deal of noise about how it has integrated the securities firm. But the fact is that Merrill, or any of the major capital markets players would be well nigh impossible to resolve without having serious market impact...

Join us on our Social Networks:

 

Share this page with your friends on your favorite social network:


Purse.IO Save on All Amazon Purchases