I remember Obama or someone wanting these bailouts to be automatic, or am I getting that wrong?
Didn't Warren Buffet invest a sizeable amount into BofA way back when? If memory serves, the stock was at $8.00, or thereabouts.
Grandpa Warren just happens to be a major player in the NWO/’gen21 takedown of the middle class of the U.S., along with other traitors such as Bill/Melinda Gates.
I think this is simply quid pro quo, or your garden variety crony capitalism.
I could well be wrong, Lorianne, but that's my initial impression here.
Why is it bewildering? The FED is the Daddy of the money-center banks and primary dealers. Its main responsibility is to them.
As a side note, conservatives will never make any progress in rolling back the Left as long as the Federal Reserve continues to operate as is. It is the main pillar of Progressive plans for Government.
Let me try and clarify. When BOA took over Countrywide Credit that institution was teetering on Bankruptcy. Days,maybe hours away. BOA could of waited and purchased that company afterwards,after negotiating with the creditors and paid much much less. Instead they assumed the liabilities and dutifully have paid off billions and billions in bonds that CC had issued. Had CC defaulted we get back to that old bogeyman credit default insurance. Whatever the $$ figure on CC’s debt outstanding,over 20 billion i’m pretty sure, there was a multiple of that outstanding in insurance on that debt.
So we have a major financial institution ready to fail which is going to cost the banks maybe 50 billion plus all of the chaos involving all of the mortgages placed by CC. Many were owned by Fannie and Freddie Mac.
Countrywide was in a sense the other piece of AIG Much of the garbage AIG insured came from CC.
So we get to the point of just why did BOA buy them? Nothing i’ve said wasn’t known by the time everything started unwinding in 2008. What wasn’t known was the ultimate cost of CC failing, of all the mortgages repackaged, sliced and diced up into their principal and interest components. Nobody knew just how tangled everything was and that was intolerable considering how things already were.
Now we get to the point. Nobody working on wall Street at the time believed that BOA decided that taking over a company with untold legal liability of which precious little would have been recovered, of a company with billions of doubtful loans on their books, made sense. The exposure wasn’t quantifiable. The Fed itself arranged that marriage. Nothing else makes sense. With that marriage came some assurances that CC wouldn’t be an endless albatross around the neck of BOA. Nothing and i mean nothing else makes any sense at all.
Bank of Amigo...didn’t they give mortgages to illegals?