Discussion in 'Economy' started by FireFly, May 10, 2011.
40% of Bank of America home loans are at least three months past due!
Given BofA's crappy inventory of loans I'm surprised that they are doing this well.
I guess that acquisition of Countrywide was not such a good idea.
One would think any given company that assumes a 40% failure rate something of a concern to it's board of directors, unless of course, the gov teat is involved on the horizon.....
Must have been a good year for bonuses at BoA?
I don't understand how the bank could even be solvent right now? They would have to have a leverage ratio of 2.5 to 1 to still be solvent. But they were supposedly leveraged at 11.7 to 1. Where did they get the cash to keep the doors open?
A default rate of 5.47 percent would make Fannie Mae insolvent at a leverage ratio higher than 18.3 to 1. They were leveraged to 70 to 1 so there is no way they are even close to solvency either.
BoA is too big to fail so no worries.
They borrowed it from you, your children, grandchildren and great grandchildrens childrens children.
Don't worry. They have no plans on paying it back.
[ame=http://www.youtube.com/watch?v=oOpQkRsEfaU&feature=related]YouTube - ‪Senator Sanders asks Bernanke WHERE IS THE MONEY!!!‬‏[/ame]
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