Bank of America Profit of $4 Billion

[ax]

Bank of America Profit Soars

"Increases in trading account profits, investment and brokerage services, gains on sales of debt securities and other income reflected the addition of Merrill Lynch while growth in mortgage banking income reflected the Countrywide acquisition and higher mortgage activity due to lower interest rates"

As c1ue pointed out about Citi results, you don't even have to read between the lines on this one. $2.2 billion gain from the decrease in value of Merrill debt and $1.9 billion pre-tax gain on sale of China Construction Bank shares.

[grandcru]

Re: Bank of America Profit of $4 Billion

The Turner Radio Network has obtained "stress test" results for the top 19 Banks in the USA.

The stress tests were conducted to determine how well, if at all, the top 19 banks in the USA could withstand further or future economic hardship.

When the tests were completed, regulators within the Treasury and inside the Federal Reserve began bickering with each other as to whether or not the test results should be made public. That bickering continues to this very day as evidenced by this "main stream media" report.

http://www.bloomberg.com/apps/news?p...efer=worldwide

The Turner Radio Network has obtained the stress test results. They are very bad. The most salient points from the stress tests appear below.

1) Of the top nineteen (19) banks in the nation, sixteen (16) are already technically insolvent.

2) Of the 16 banks that are already technically insolvent, not even one can withstand any disruption of cash flow at all or any further deterioration in non-paying loans.

3) If any two of the 16 insolvent banks go under, they will totally wipe out all remaining FDIC insurance funding.

4) Of the top 19 banks in the nation, the top five (5) largest banks are under capitalized so dangerously, there is serious doubt about their ability to continue as ongoing businesses.

5) Five large U.S. banks have credit exposure related to their derivatives trading that exceeds their capital, with four in particular - JPMorgan Chase, Goldman Sachs, HSBC Bank America and Citibank - taking especially large risks.

6) Bank of America`s total credit exposure to derivatives was 179 percent of its risk-based capital; Citibank`s was 278 percent; JPMorgan Chase`s, 382 percent; and HSBC America`s, 550 percent. It gets even worse: Goldman Sachs began reporting as a commercial bank, revealing an alarming total credit exposure of 1,056 percent, or more than ten times its capital!

7) Not only are there serious questions about whether or not JPMorgan Chase, Goldman Sachs,Citibank, Wells Fargo, Sun Trust Bank, HSBC Bank USA, can continue in business, more than 1,800 regional and smaller institutions are at risk of failure despite government bailouts!

The debt crisis is much greater than the government has reported. The FDIC`s "Problem List" of troubled banks includes 252 institutions with assets of $159 billion. 1,816 banks and thrifts are at risk of failure, with total assets of $4.67 trillion, compared to 1,568 institutions, with $2.32 trillion in total assets in prior quarter.

Put bluntly, the entire US Banking System is in complete and total collapse.

More details as they become available. . . . . .


UPDATE 0147 HRS EDT Monday, April 20, 2009 --

For those who may be skeptical about the veracity of the stress test report above, be reminded that only last Sunday, April 12, this radio network obtained and published a Department of Homeland Security (DHS) Memo outlining their concerns that returning US military vets posed a domestic security threat as "right wing extremists." That memo, http://www.bloomberg.com/apps/news?p...efer=worldwide
http://www.washingtontimes.com/news/...cals-on-right/
, is marked "FOR OFFICIAL USE ONLY" and contained strict warnings that it was not to be released to the public or to the media. We obtained it and published it days before other media outlets.

That DHS report appeared on this blog at least two full days before the story was picked up by The Washington Times, and virtually every other US media outlet.

Details of certain aspects of the stress test reported above have now been CONFIRMED through REUTERS News service when they disclosed the risk-capital percentages publicly on April 6, 2009 at this link

http://www.reuters.com/article/press...009+BW20090406

Further, todays Wall Street Journal (April 20, 2009) is confirming at this link
http://online.wsj.com/article/SB1240...=djemalertNEWS
that lending by the largest banks has DECREASED 23% since the government began the T.A.R.P. program, causing many in Congress to ask where the money has actually been going. Apparently, it has been going into propping-up the failing banks instead of out in loans to the public.

Additional details and proofs are forthcoming. . . . . continue to check back on this developing story.

[Chomsky]

Re: Bank of America Profit of $4 Billion

Here's a link to this story:

http://turnerradionetwork.blogspot.c...st-reults.html

[aaron]

Re: Bank of America Profit of $4 Billion

So, is the stress test results worse than iTulip predicted?

[FRED]

Re: Bank of America Profit of $4 Billion

So, is the stress test results worse than iTulip predicted?

Paradox: iTulip is seen as pessimistic by most readers, yet has been consistently optimistic in its forecasts.

[jk]

stress test assumptions ALREADY exceeded in real life

Unemployment Rate Already Surpasses Bank "Stress Test" Assumptions

April 3, 2009 2:04 PM EDT



Today's unemployment number of 8.5% means that the nation's current unemployment situation is already worse than the government's 8.4% "baseline scenario" in the "stress tests" being conducting on banks.

With 9 more months of job cuts to go, the government's "adverse scenario" of 8.9% unemployment looks like it too will be easily surpassed - maybe as soon as next month....
http://www.streetinsider.com/Insider...s/4540112.html

[Chomsky]

Re: Bank of America Profit of $4 Billion

Here's a link to this story:

http://turnerradionetwork.blogspot.c...st-reults.html

Mr. Turner caught Treasury's attention:

http://www.bloomberg.com/apps/news?p...seA&refer=home

April 20 (Bloomberg) -- A U.S. Treasury spokesman said there’s no basis to a blog posting that buffeted financial stocks by saying that most of the nation’s largest banks are insolvent.

Andrew Williams, a Treasury spokesman, dismissed the report from Hal Turner of North Bergen, New Jersey, “particularly given we don’t have stress test results yet.” Turner has advocated violence against blacks, Jews and immigrants on his Web site and Internet radio show, according to the Anti- Defamation League, created in 1913 to monitor anti-Semitism.

The Financial Select Sector SPDR Fund, an exchange-traded fund tracking banks, brokerages and insurers, fell to $10.62 from $10.75 in six minutes after FlyOnTheWall.com cited Turner’s blog post at 8:14 a.m. in New York. At 8:30 a.m., FlyOnTheWall advised readers to disregard the earlier story.

The XLF, as the financial ETF is known, sank as low as $10.26 at 12:48 p.m. in New York after JPMorgan Chase & Co. said banks worldwide are likely to realize about $400 billion more in losses on soured assets, requiring further injections of government capital.

In his blog posting, Turner said 16 of the banks are “already technically insolvent.” He mentioned HSBC Holdings Plc as one of the lenders. HSBC isn’t among the 19 banks being examined, according to the government.
Reached by telephone, Turner declined to say who would have given him the government’s so-called stress test of the 19 biggest U.S. banks. The Federal Reserve has said it plans to release results on May 4.

Turner, when asked if one of the quotes on the ADL Web site sounded like something he once said, replied that “it certainly fits the niche of the radio show at the time.”

To which Turner responds:

UPDATE 1154 HRS EDT April 20, 2009 --

The United States Treasury has openly and brazenly lied regarding our stress test report and we can prove they have lied about it.

This morning, the United States Treasury issued a statement (HERE) claiming they do not yet have the results of the Stress Tests, rebuking our report

How do we know its a lie?

Because of this from April 10th:

April 10 (Bloomberg) -- The U.S. Federal Reserve has told Goldman Sachs Group Inc., Citigroup Inc. and other banks to keep mum on the results of “stress tests” that will gauge their ability to weather the recession, people familiar with the matter said.

The Fed wants to ensure that the report cards don’t leak during earnings conference calls scheduled for this month. Such a scenario might push stock prices lower for banks perceived as weak and interfere with the government’s plan to release the results in an orderly fashion later this month.

How can you be ordered not to release something you don't have?

Since that was published on the 10th of April, we therefore know that the results exist and Treasury, the banks involved and The Fed have them, as The Fed was concerned that some banks might try to use them (perhaps in a misleading fashion) during their first quarter conference calls and earnings releases.

Sorry guys, but whether the Turner Radio Network has the real results or not is no longer material. What's material is the claim that Treasury doesn't have them, since they told the banks on the 10th not to release them, and you can't release what you don't have.

The problem with lying is that eventually you forget your previous lies and thus get caught when you contradict yourself.

[c1ue]

Re: Bank of America Profit of $4 Billion

Here are the money shots:

	Deposits
	2009	2008
Total revenue,
net of interest
expense (3)	$3,464	$4,150
Provision for
credit losses	311	246
Noninterest
expense	2,363	2,216
Net income
(loss)	493	1,060
Efficiency
ratio (3)	68.2	% 53.37%
Return on
average equity	8.41	16.99
Average -
total loans and
leases	n/a	n/a
Average -
total deposits	$377,575	$339,464

Revenue from Deposits down 16.5%; income cut in half. Total deposits UP!

Global Card Services
2009	2008
$7,457	$7,868
8,221	4,312
2,075	2,199
-1,769	867
27.83%	27.95%
n/m	9.18
$224,406	$229,147
n/a	n/a

Revenue down a bit, but income from +867M to -1768M - a minus 2.6B swing!

Home Loans & Insurance
2009	2008
$5,224	$1,372
3,372	1,812
2,650	722
-498	-732
50.73%	52.66%
n/m	n/m
$126,696	$87,238
n/a	n/a

Hmm interesting. A more than quadrupling of insurance revenue, yet a merely 32% decrease in losses.

	Global Banking
	2009	2008
Total revenue,
net of interest
expense (3)	$4,641	$3,856
Provision for
credit losses	1,848	526
Noninterest
expense	2,511	1,740
Net income	175	1,000
Efficiency
ratio (3)	54.11	% 45.13%
Return on
average equity	1.25	8.73
Average -
total loans
and leases	$330,972	$305,924
Average -
total deposits	196,061	160,726

Revenue up, losses up, 2008 income of $1B becomes 2009 gain of $175M

Global Markets
2009	2008
$6,791	($848)
51	-1
3,059	726
2,365	-991
45.04%	n/m
33.81	n/m
$18,610	$20,927
8,516	13,486

Another Ah ha! 2008 revenue of -848M becomes a 2009 revenue of 6.8B! Associated income goes from -991M to 2365B! A swing of over $3.4B!

Global Wealth Management
2009	2008
$4,361	$1,942
254	243
3,288	1,314
510	242
75.41%	67.71%
11.21	8.4
$110,533	$85,644
249,350	148,503

Revenue up. Income up. Not much effect either way.

So again, magical accounting gimmicks helped, but the performance of 'Global Markets' was a big factor as well.

[tragoudistis]

Re: Bank of America Profit of $4 Billion

BofA is -16% now.Why?

[WildspitzE]

Re: Bank of America Profit of $4 Billion

BofA is -16% now.Why?

Why not?

You want to see ugly earnings :eek:... check this out:

courtesy of the big picture blog.

[charliebrown]

Re: Bank of America Profit of $4 Billion

i think the bulk of the profits are accounting tricks, one time gains, fees from mortgage refi's etc.

Unless unemployment turns around quickly how are people going to pay the banks back? Next BLS release May 8th, keep your eyes open.


What do people think about this??
http://www.moneyandmarkets.com/big-b...eception-33228

[tragoudistis]

Re: Bank of America Profit of $4 Billion

Why not?

You want to see ugly earnings :eek:... check this out:

courtesy of the big picture blog.

We go to WWIII,now?:eek:

[tragoudistis]

Re: Bank of America Profit of $4 Billion

i think the bulk of the profits are accounting tricks, one time gains, fees from mortgage refi's etc.

Unless unemployment turns around quickly how are people going to pay the banks back? Next BLS release May 8th, keep your eyes open.


What do people think about this??
http://www.moneyandmarkets.com/big-b...eception-33228

The summer of hell is coming...

[Supercilious]

Re: Bank of America Profit of $4 Billion

[goadam1]

Re: Bank of America Profit of $4 Billion

Who is turner radio networks?