(11 am. – promoted by ek hornbeck)
Up front disclaimer, I am suing WaMu and their successor, JPMorgan. You can read the saga here and here. While my battle with them doesn’t change the facts here, it does serve to explain my rage. On second thought when I exhort us all to take a page on retribution from Conan the Barbarian … “crush my enemies, drive them before me and hear the lamentations of the women,” rage doesn’t quiet cover it. Here is the latest installment about Jamie Dimond thief in chief at JPMorgan, you will find the comments there from people who are made as hell. Follow me below the fold for a mere snack, a snippet, a snapshot of what the banks and Wall Street and their sycophants have been up to, because I want you mad as hell too.
We already know Dimond’s main attributes in banking is larceny and lying. But he isn’t the only one, not by a long shot. B of A was in the news this week starting with this article, B of A CEO Quibbles Over $10 Billion from Motley Fool.
In an interview with the Financial Times, Bank of America’s (NYSE: BAC) CEO called his request for $20 billion in aid from the government to complete the acquisition of Merrill Lynch “a tactical mistake” because it led investors to lump the lender in with troubled giant Citigroup (NYSE: C). Instead, he says he should have requested … just $10 billion.
Lewis is right (little picture) and wrong (big picture)
Whether $10 billion or $20 billion, it’s still taxpayer-funded support. Ken Lewis is right that B of A and Citi have been lumped together somewhat unfairly, given that there is a difference in quality between the two franchises. However, that is a discussion of degree that obscures a much more important debate regarding a characteristic that the two banks do share: They are both too big to fail (TBTF).
These are a few of the TBTF banks, of the 15 or so banks with more than 100 billion in assets:
Nationalizing banks would be nightmare-B of A CEO. Listen to this self serving steaming pile.
Bank of America Corp’s (BAC.N: Quote, Profile, Research) chief executive said on Thursday it would be a “nightmare” for U.S. banks to be nationalized, wiping out shareholders and perhaps bondholders, and further damaging an economy that could begin to recover as soon as this year.
They are running scared, yes in deed. Nationalize the banks and with not much digging, since as many as 80% of ALL mortgages contain mistakes lending violations in the billions and jail time. Keep those handouts coming and listen to the enablers, yep there’s the ticket, wouldn’t want any of you looking too closely.
Speaking to the Chief Executive Officers Club of Boston, Lewis praised government efforts to revive banks hurt by hundreds of billions of dollars in writedowns and credit losses, but agreed with Federal Reserve Chairman Ben Bernanke that full takeovers are the wrong way to go.
“It would give the false impression that all banks are insolvent, and investors would immediately start betting on which banks would be next, possibly creating a self-fulfilling prophecy,” he said. “And government control of large banks would politicize lending decisions and the capital allocation process, damaging the economy.”
Well, Mr. Lewis glad to hear your banking decisions are based on pure unadulterated, unfettered GREED! Give the false impression the banks are insolvent? Gee, everything we’ve been seeing says you ARE insolvent. So my question is since you got paid twice for most of those toxic mortgages, were DID that money go?
Nationalization would wipe out the shareholders … have a little reality check Mr. Lewis. Just about a year ago B of A was trading at a high of $43.46, 11 months later, last month in fact it traded at a low of $2.53. Even with your rosy announcements and pronouncements it only managed to go up to just $6.45 during the mid-week rally. Lets be nice and say someone has 1000 shares, if sold $43.46, a nice nest egg to 1000 shares at $6.45 enough for a well used car. I gotta ask, how much more wiped out could your stockholders be when they are pretty close to nothing now and you did THAT all on your own. B of A has gone from a market cap of $215 billion dollars to a market cap of less than $35 billion and is now being touted America’s investment opportunity. Don’t give up on the scams and lies, there might be a enough suckers born every minute to bail your larcenous ass out without TARP.
Speaking of TARP, don’t expect banks to bite again. They’ve seen the future and they aren’t liking it A LOT. Stricter regulations, claw back provisions and we haven’t even got to the threat of investigations.
“I actually think the next six months is going to be, in a positive way, a gut-wrenching time,” Lewis told an audience at the Chief Executive Officers Club of Boston. “We’re going to start seeing signs of improvement and, at some point, you have to pull the trigger on that investment or that expansion.”
Gut wrenching? OH PULEEZE, talk to the people who’s homes you are taking, the good mortgages you are happy to jetison. No one believes you would throw away a good mortgage, but when you have insurance why not? How better to break the back of the middle class than go after those who can afford their homes, are current on their loans. You foreclose and it will be a cold day in hell before they ever own another home, funny how that works. Let’s see you bundle the mortgages in investments and sell them, get insurance to cover the defaults and then get our money for your “toxic” assets and they say crime doesn’t pay. It apparently pays pretty damned well.
From the same article, CAPS ON EXEC PAY IS WRONG.
Alluding to a provision in February’s government stimulus package, Lewis said it is wrong to require TARP recipients to cap pay of executives who are just below the top level and produce high amounts of revenue. He said they could be lured by foreign banks or boutique firms not subject to such limits.
Wrong to cap pay of executives who are producing high amounts of revenue. Really? Seems they are or they aren’t. Based on needing TARP funds it would seem they aren’t, but what if he is telling the truth? Exactly what kind of revenue are they producing, is it real or another scam? I bet scam. If these huge amounts were coming in then why take TARP money, I think Mr. Lewis has a lot of “splaining to do, in front of Congress, under oath would be my preference.
Make no mistake about this, it IS war. So pick your General.