BofA is Collapsing

[Jay]

Re: BofA is Collapsing

Think about it. If the U.S. Dollar does not stand for the next century as the world's sole reserve currency, then neither does the U.S. Federal Reserve stand for that time as the world's most powerful central bank.

The present bubble in the Fed's dominant role and massive balance sheet will burst, like all good bubbles.

I agree with most of what you have written except the last part which is the crux of my position; it is not at all clear to me that Treasuries are going to burst. I see a gradual take down through market forces, likely with the insiders playing along. The longer period of time this takes the better in their eyes, they have all the cards, why rock the boat? I see it as probable that the Anglo banking system does what it has been doing, stay in ZIRP, print their asses off, sterilize it as best they can, and eventually we will get a new reserve currency after they squeeze the dollar as hard as possible first. The dollar is a big currency, there is more room to squeeze in my mind, I don't think it will just capsize. I don't see the motive for any of the players to get itchy feet. Where are they going to run to?

[don]

Re: BofA is Collapsing

Interactive: CDOs’ Interlocking Ownership

http://www.propublica.org/special/in...uzc1p,1odeh9wv

[Camtender]

Re: BofA is Collapsing

From today

http://money.cnn.com/2010/09/24/pf/n...fees/index.htm


Bank of America: Just last week, Bank of America said it plans to raise minimum balance requirements over the next 12 months and charge a monthly account fee for customers who can't maintain those balances.

"We currently estimate over time through these and other items we are working on that we will have the ability to offset a substantial majority of the revenue from the various regulatory changes," Bank of America (BAC, Fortune 500) CEO Brian Moynihan said in a presentation to investors last week.

Customers enrolled in the lender's new eBanking checking account will be charged $8.95 per month if they opt to receive paper statements and visit tellers instead of banking online. Since the launch of eBanking in August, nearly half of all new checking accounts fall into this category.

Earlier this year, annual fees ranging from $29 to $99 were applied to a variety of Bank of America credit card accounts.


Looks like another reason to pull capital out of the TBTF and go with credit unions

[tsetsefly]

Re: BofA is Collapsing

Pushbacks are forced loan repurchases on mortgage originators, think Countrywide.

The new loan putbacks are coming from Fannie Mae and Freddie Mac, which generally have more power to return loans than private investors. If you're a mortgage banker, and you sell a loan to a GSE-sponsored company, the number one thing you have to be worried about is that at some point, that loan is going to have to be repurchased due to a fraud claim by the GSE.

Are they forced because that was the original contract(sort of like with put on stocks) or something triggers the putback?

Thx

[swgprop]

Re: BofA is Collapsing

Are they forced because that was the original contract(sort of like with put on stocks) or something triggers the putback?
Thx

The initial trigger is delinquency/default on the part of the borrower. Then the investor/trustee/GSE conducts an audit that determines there was fraud somewhere in the origination process or that eligibility and underwriting guidelines were not adhered to. Repurchase of the loan is forced based on reps and warranties in the Pooling and Servicing Agreement or other agreement covering loan sales/servicing/underwriting.

[oddlots]

Re: BofA is Collapsing

Comic relief: Louis CK does a funny bit about this here. (Warning: if you don't like the liberal use of expletives this not for you.)

[don]

Re: BofA is Collapsing

Thanks for the lessons while laughing

[Camtender]

Re: BofA is Collapsing

Bond holders are pissed

Institutional Holders of Countrywide-Issued RMBS Issue Notice of Non-Performance Identifying Alleged Failures by Master Servicer

http://www.tradingmarkets.com/news/p...d-1237759.html