Comments on: Bank of America Screws Taxpayers Coming and Going

By: BooRadley

BooRadley — Tue, 12 May 2009 13:49:43 +0000

Thanks masaccio.

By: alank

alank — Tue, 12 May 2009 02:25:11 +0000

Great post. The 100% markup on borrowing costs seems counter-intuitive given the falling cost of money to the lenders. It’s not just due to the direct transfers of entitlement funds to the too-big-to-fail elite club, but also the Fed low-interest policy that’s near 0 Kelvin. But what do I know?

By: MarkH

MarkH — Tue, 12 May 2009 01:08:21 +0000

I hope stimulus spending kicks in soon. Where can one learn about the ‘credit markets’ and how much lending is occurring (preferably in chart form to show relation to the past)?

By: bushbehindbars

bushbehindbars — Tue, 12 May 2009 00:31:01 +0000

And torches. And tar and feathers.

By: masaccio

masaccio — Mon, 11 May 2009 22:00:26 +0000

Wow, looks like I messed up the link. Here, I hope, is the correct link to the most recent 10-Q.

To answer your question, there are administrative expenses. They appear on page 95 as “non-interest expense”. For 2009 first quarter they are $2.075bn compared with $2.199bn for the first quarter of 2009. Thus, there was a good bit of cost-cutting.

The loss in this segment was due to a huge increase in the reserve for loan losses, which was $8.2bn, which I make to be about 4% of the outstanding holdings in this segment. That would make a huge loss for the year if it continues, which the NYT says today is likely across the industry.

By: ThingsComeUndone

ThingsComeUndone — Mon, 11 May 2009 21:55:09 +0000

I think Foreign banks will end up buying our major banks in a year or two.

By: ThingsComeUndone

ThingsComeUndone — Mon, 11 May 2009 21:54:23 +0000

How much cash can we give the banks to burn through until they make money?

By: ThingsComeUndone

ThingsComeUndone — Mon, 11 May 2009 21:53:18 +0000

How are banks making money these days home sales are down an d many of those sales are short sales at a loss for the banks?
Is anyone buying Mortgage paper anymore from the banks even if the banks make a loan?
Hedgefunds who buy mortgage loan paper have their own trouble, stocks are down, big corporate buyouts where banks get a cut for arranging the deal they are down.
Hot new Initial Public Offerings on the stock market that the investment firms dealt in they are down.
So just how are the banks making money?

By: ThingsComeUndone

ThingsComeUndone — Mon, 11 May 2009 21:43:56 +0000

Our costs of providing credit have significantly increased.”

Due entirely to your poor business choices but I still see you guys getting bonuses for good work!
We should be going after you for fraud and taking back your previous bonuses based on fraud!

By: ThingsComeUndone

ThingsComeUndone — Mon, 11 May 2009 21:40:31 +0000

BOA are jerks I think they might still get what they deserve the bank bailout is flawed as several Posters and Commentors here have noted there is a good chance BOA might go under.
After all just who besides the business channel talking heads believe BOA’s numbers even after the stress test?