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Bank of America to get more capital



January 15, 2009 – Comments (3) | RELATED TICKERS: BAC

The NY Times reports that BoA is asking for more money from the Treasury. Ken Lewis told regulators that Merrill had taken substantial losses, potentially putting the combined entity in jeopardy.

Ken, you should have waited.

3 Comments – Post Your Own

#1) On January 15, 2009 at 10:38 AM, QualityPicks (59.20) wrote:

They deserve all the money we can give them. [sarcasm]

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#2) On January 15, 2009 at 11:06 AM, FoolishChemist (92.89) wrote:

If BAC does go under what would that do to the FDIC?  They hold more than 10% of the deposits in the US.  I'm glad I'm under the $250k limit.

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#3) On January 15, 2009 at 2:04 PM, gringo35 (< 20) wrote:

Well I don't know why we just dont let more banks go out of buisness.  This would bring more capital in the form of deposits into healthy and well run banks and in turn make more money available for the "good banks" to continue to grow their business in a responsible and conservative manner.  This is capitalisim people!!!!!  Banks and other businesses alike who get too greedy and big for their britches or "grow too much too fast",  find themselves in compromising positions and eventually have to pay the piper. 

 There are banks out there that are run well and have not decided to take on risk like some of the larger banks have with their little goverment encouraged scheme of  loaning money to people who they knew could never afford to pay it back.  This was essentially a get rich quick conspiricy/ scheme devised by bankers and politicians to make things look very rosey on wall street for a few years so they could watch the stock in the "big" banks and brokerage firms go up and then cash out before it all came crumbling down.  These people knew exactly what they were doing!!!!  They should all be held accountable and that includes politicians like Barney Frank. 

I wonder if BOA had not gotten greedy in the chaos that started last year and aquired Countrywide or ML, would they be better off????  Hell yeah they would!!   The only reason they made bids for those aquisitions is because they knew the government would have to bail them out too. They aquire those companies, the taxpayers of america get stiffed with the check for the bad paper on their books and  BoA gets off scott free with the remaining good assetts and two fewer competitors in the marketplace.     

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