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TMFEditorsDesk (< 20)

Fat, Drunk, and Stupid Bank of America is on Double-Secret Probation

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22

July 16, 2009 – Comments (10) | RELATED TICKERS: BAC , JPM , C

Further down in the news from Paulson testifying about pressuring B of A, JPMorgan's earnings, and CIT's problems is the revelation that Bank of America is basically on double-secret probation.  Its frat brother Citi is as well.

Courtesy of the WSJ:

Bank of America Corp. is operating under a secret regulatory sanction that requires it to overhaul its board and address perceived problems with risk and liquidity management, according to people familiar with the situation.

Rarely disclosed publicly, the so-called memorandum of understanding gives banks a chance to work out their problems without the glare of outside attention. Financial institutions that fail to address deficiencies can be slapped with harsher penalties that include a publicly announced cease-and-desist order. 

...

Citigroup Inc. has been operating since last year under a similar order with the Office of the Comptroller of the Currency, according to people familiar with the matter. The company recently has been negotiating with the Federal Deposit Insurance Corp. about entering into a similar agreement with that agency, these people say.

http://online.wsj.com/article/SB124771415436449393.html#mod=testMod 

- Anand (who thinks this situation absolutely requires a really futile and stupid gesture be done on somebody's part...and that person is Ken Lewis)

10 Comments – Post Your Own

#1) On July 16, 2009 at 12:10 PM, catoismymotor (24.55) wrote:

Who do I need to call to get this dead horse out of my office?

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#2) On July 16, 2009 at 12:41 PM, TMFEditorsDesk (< 20) wrote:

Fair enough, cato...I couldn't resist the double-secret probation angle, though.

-Anand

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#3) On July 16, 2009 at 12:50 PM, catoismymotor (24.55) wrote:

Anand,

LOL! That was not a jab at you over the Animal house quote. I just love the scene where Dean Wormer is having the dead horse dismembered and removed from his office after Flounder gave it a heart attack.

Fool On!

Cato

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#4) On July 16, 2009 at 12:57 PM, TMFEditorsDesk (< 20) wrote:

Haha, my bad...I thought you were going once step further with the "beating a dead horse" thing.

I will throw an extra nugget out there while I'm here...I believe John Belushi's performance in Animal House is the greatest comedic turn in movie history. Am I wrong? 

-Anand

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#5) On July 16, 2009 at 1:06 PM, TexasChris (62.12) wrote:

'Did we quit when the Germans bombed Pearl Harbor? ... No!'  Disclosure: I own BAC stock.

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#6) On July 16, 2009 at 1:06 PM, TMFRhino (98.16) wrote:

You're clearly forgetting Carrot Top's career re-inventing odyssey Chairman of the Board...

 http://www.imdb.com/title/tt0118836/

Wacky over the top comedy based on farting humor, or biting social commentary? My vote goes to both.

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#7) On July 16, 2009 at 1:28 PM, TMFEditorsDesk (< 20) wrote:

That's strong, Eric...I was going to nominate Pauly Shore in um, anything, but Carrot Top probably beats him.  At first, I thought he was Ronald McDonald in the movie photos.

All is well! 

Anand

PS...I forgot to disclose earlier that I still own shares of Citigroup...can't tell if that's comedy or heart-wrenching drama.

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#8) On July 16, 2009 at 2:59 PM, TMFCHarris (99.59) wrote:

Carrot Top's appearance on Reno 911! is far and away the funniest thing I've ever seen him in.  I think the whole thing is here.

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#9) On July 16, 2009 at 4:52 PM, Option1307 (29.75) wrote:

Rarely disclosed publicly

Perfect, keep the public in the dark even more. I love transparency, Woo!

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#10) On July 16, 2009 at 8:17 PM, ChrisGraley (29.75) wrote:

You know what this means?

 

 

Roadtrip!!!!!!

 

Sorry I couldn't resist.

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