Bank Of America Implodes; Bankruptcy Contemplated

Zero Hedge ^ | 8/8/2011 | Zero Hedge

[Nobel_1]

With Bank of America investors finally realizing it is game over for the company as a going concern, at this point there are just two options for Brian Moynihan:

- the spin off of CFC as a bad bank, backstopped by the Fed, or

- Chapter 11, which for a bank is essentially liquidation (and with CDS trading up 50 bps to 260 a bankruptcy seems increasingly inevitable).

It also means that another TARP is on the way. And once America realizes that another several trillion have to be put into its insolvent banking sector, it will get quite violent. The biggest irony: it is AIG which takes down the financial system for the second time after its lawsuit against BAC filed last night kills Bank of America.

[Nobel_1]

First Zero bails-out AIG and blows a couple trillion ... then AIG turns around in it's total greed and brings down BOA, precipitating another round of TBTF (too big to fail) ...

[Freddd]

Wouldn’t that be another Obama downgrade?

[Vigilanteman]

It couldn’t happen to a more deserving bank.

[null and void]

Couldn’t happen to a nicer bank...

[gop4lyf]

Wonder how that giving credit cards to illegals worked out for them?

[WOBBLY BOB]

“Bank of Amigos”

[null and void]

36 seconds GMTA

[who knows what evil?]

Does this mean I won't get any more of their crap in the mail?

Ya-frickin'-hoo!

[Newton]

how does this affect the consumer level? Mega-lo bank is my bank (unfortunately)... on a side note... we still have some stocks(from back in the good ‘ole days) and I have really been wondering if we need to cash them in and do like my grandfather did.... cash in a safe......

[EGPWS]

How long before a calculator is needed to count the 0bama clusterf***s?

[Palter]

Bush bailed[counterparties in AIG’s derivative deals paid 100%] out AIG first.

AIG and others are responsible for their own actions. Perhaps they would have researched risk before preparing CDS and other sure things.

[Puppage]

“Bank of Amigos”

Bank of Amigos de Illegal

[JPG]

Bank Of Anti-America.

[Nobel_1]

Re: Zero’s Cluster*

Uh, that clock started on 1/21/2009 ...

we hit Defcon 1 today

Zero = the ultimate usurper, making Americans the ultimate loser

[Squawk 8888]

Canadian-owned banks are a pretty safe place to park your money- TD, RBC, BMO, CIBC and Scotia all have branches in the USA.

[WOBBLY BOB]

how long before they get their bailout?

[Former Proud Canadian]

Umm, not really, I don't think. Canadian banks have US subsidiaries. If TSHTF they might go down too. Don't expect head office to bail them out.

Deposits in Canadian banks in Canada are a different story.

[lurk]

Pity.

They were always so helpful and focused on their customers’ wellbeing.

[Roccus]

First Zero bails-out AIG and blows a couple trillion

1) I think that was Paulson/Bush with TARP.
2) How was AIG bailed out? The name and hierarchy remain, but the stockholders in AIG, which ARE the company, were DESTROYED!!!
3) The shell that AIG became was the needed washing machine so that Paulson/Bush could launder money that was suppossed to pay for "toxic assets" but was instead directly infused into banks foreign and domestic.

[Nobel_1]

Re: Bush’s fault

I believe the decline of America over the last 2 years is fully engineered ... squarely on the shoulders of Zero, our modern day Nero. Hip-Hopping the night away as America goes down in flames.

While everyone has contributed to putting straws on the camel’s back ... Zero alone has dropped the final warheads on the camel, vaporizing all involved.