Do you think Bank of America will go under?

[crockett]

Things seem to be looking worse and worse for BoA as today they along with 4 other of the big 6 banks were downgraded by S&P to A-.

With the loss of business from all the people transferring to community banks or credit unions they have to be feeling the pinch, being are were the largest bank in the US. Added to this they were one of the worst culprits of the whole banking fiasco that has caused this country and even the world a lot of grief.

They keep getting bad publicity after bad publicity and they deserve it but I wonder how long can they hold up? Personally, I think it would serve them right to go under, but I guess only time will tell if they stay alive or not.

[LeRoy]

They charge tons of fees.

They're here to stay

[scuba steve]

Aren't they the equivalent of something like GE or GM? On of those bigger disasters if it happens?

[BIGTYMER]

Our gov would never let them fail.

[96ukssob]

Originally Posted by crockett

Things seem to be looking worse and worse for BoA as today they along with 4 other of the big 6 banks were downgraded by S&P to A-.

With the loss of business from all the people transferring to community banks or credit unions they have to be feeling the pinch, being are were the largest bank in the US. Added to this they were one of the worst culprits of the whole banking fiasco that has caused this country and even the world a lot of grief.

They keep getting bad publicity after bad publicity and they deserve it but I wonder how long can they hold up? Personally, I think it would serve them right to go under, but I guess only time will tell if they stay alive or not.

they are the nations largest bank and quoted "to big to fail." their issue is the purchase with countrywide, that really screwed them over so now they rape bank customers on fees to recover that.

i paid my credit card the DAY it was due last month and got a late fee. they said the put the late fee on the accounts at close of business at 4pm, but I paid it at 6pm. it was a struggle to have them remove it

[Rochard]

When they bought out Countrywide I was stunned. Who the fuck would buy such a large mortgage company as it was crashing down? That was pure stupidity.

[Solace]

Originally Posted by BIGTYMER

Our gov would never let them fail.

Yes the owners of your government would never let them fail

[Choker]

Originally Posted by Rochard

When they bought out Countrywide I was stunned. Who the fuck would buy such a large mortgage company as it was crashing down? That was pure stupidity.

Feds strong armed them into buying it in return for a bailout.

[epitome]

BofA recently lost their spot as biggest bank and is now second biggest. I think JP Morgan Chase moved to #1.

[FreeHugeMovies]

Hell no B of A isn't going under.

[Houdini]

Government won't let it fail. If anything, they'll break it up to get the bad assets away from the core business. Another dollar or two and it will be a 400-500% return on the upside in a few years. Wait until Greece defaults and S&P is sub 1000 to start buying.

[Sid70]

Wells Fargo! Go as Far as you can!

[faxxaff]

I will start buying BAC once it dips below 3$ a share. A double bottom would be a perfect buy signal.

[TurboAngel]

Probably not.

[JA$ON]

Originally Posted by faxxaff

I will start buying BAC once it dips below 3$ a share. A double bottom would be a perfect buy signal.

Aint gunnu happen. I loaded up last week when it hit its 52 wk Low. Already sold out the BAC DEC 5's. God I love this insane up and down market....even my dog can make 25% a month trading options, lol

[Sly]

Originally Posted by crockett

Things seem to be looking worse and worse for BoA as today they along with 4 other of the big 6 banks were downgraded by S&P to A-.

With the loss of business from all the people transferring to community banks or credit unions they have to be feeling the pinch, being are were the largest bank in the US. Added to this they were one of the worst culprits of the whole banking fiasco that has caused this country and even the world a lot of grief.

They keep getting bad publicity after bad publicity and they deserve it but I wonder how long can they hold up? Personally, I think it would serve them right to go under, but I guess only time will tell if they stay alive or not.

Nationally, the Credit Union National Association said credit unions gained 40,000 new members and $80 million in new savings account funds on Bank Transfer Day.

And that was just one day. Between Sept. 29, when Bank of America announced a $5 monthly debit card fee, and Nov. 5, credit unions gained 650,000 customers and $4.5 billion in new savings, more new members than in all of 2010, the association said.


Read more: http://rapidcityjournal.com/news/cus...#ixzz1fEtGrL00

So that is $4.5 billion and 650,000 customers spread across multiple major banks. That is peanuts.

[stocktrader23]

Originally Posted by Sly

So that is $4.5 billion and 650,000 customers spread across multiple major banks. That is peanuts.

$4.5 billion gives them a lot more than $4.5 billion in loans they can make. In fact, if enough money is removed they would have more loans out than legally allowed based on their deposits on hand. Pulling money out of a bank hurts them exponentially just like putting it in helps them much more than the $2000 in your savings account.

[Sly]

More than half of all checking accounts are currently unprofitable, according to a report issued last month by Celent, a unit of Marsh & McLennan Cos. It costs most banks between $250 and $300 a year to maintain one of the roughly 200 million checking accounts, according to industry estimates.

http://online.wsj.com/article/SB1000...932315142.html

[Sly]

All of that hard and easily liquidated currency is known as the M0 money supply. This includes the bills and coins in people's pockets and mattresses, the money on hand in bank vaults and all of the deposits those banks have at reserve banks [source: Hamilton]. According to the Federal Reserve, there was $908.6 billion in the M0 supply stream as of July 2009 [source: Federal Reserve]

...

M1 represents all of the currency in the M0 money supply, plus all of the money held in checking accounts and other checkable accounts, as well as all of the money in travelers' checks. In July 2009, the M1 money supply for U.S. dollars equaled about $1,655.6 billion [source: Federal Reserve].

http://money.howstuffworks.com/how-m...-the-world.htm

So we are looking at about $700 billion in checking accounts as of two years ago.

[Lace]

Originally Posted by Sid70

Wells Fargo! Go as Far as you can!

They were down graded as well.

[fogfever]

they need interest rates to rise.

[u-Bob]

From a recent blog post by Robert Wenzel:

Here they are. The Financial Stability Board has released a list of 29 banks that it considers global systemically important financial institutions (G-SIFISs) and thus considered Too Big To Fail.

The initial list of G-SIFIS:

* Belgium: Dexia
* China: Bank of China
* France: Banque Populaire, BNP Paribas, Crédit Agricole, Société Générale
* Germany: Commerzbank, Deutsche Bank
* Italy: Unicredit
* Japan: Mitsubishi, Mizuho, Sumitomo Mitsui
* Netherlands: ING
* Spain: Santander
* Sweden: Nordea
* Switzerland: Credit Suisse, UBS
* UK: Barclays, HSBC, Lloyds, Royal Bank of Scotland
* US: Bank of America, Bank of New York Mellon, Citigroup, Goldman Sachs, JP Morgan, Morgan Stanley, State Street, Wells Fargo

According to the FSB, Systemically Important Financial Institutions are firms whose disorderly failure, because of their size, complexity and systemic interconnectedness, would cause significant disruption to the wider financial system and economic activity.

[marlboroack]

BofA will not fall unless we owe money to the wrong people.

[Zoxxa]

Originally Posted by marlboroack

BofA will not fall unless we owe money to the wrong people.

but then you just go to war with them, simple.

[Dcat]

They will all go under, it's just a matter of in what sequence.