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Advisor

we had to do something

Is one thing people tell me regarding the tarp bailout. Well do we still have to?

FORTUNE -- Taxpayers may not realize it, but they just bailed out Bank of America again, this time to the tune of more than a half billion dollars. The Charlotte, NC-based bank was one of the biggest recipients of bailout funds during the financial crisis. But Bank of America (BAC) continues to face deep problems related to its troubled mortgage portfolio and investors have battered the stock, which has plunged over 40% so far this year. That's escalated concerns that the bank may need to raise more capital. Yves Smith at Naked Capitalism has even started a BofA death watch. But apparently the federal government is determined to resurrect BofA: the Wall Street Journal reports the feds have just used Fannie Mae, which is controlled by the U.S. government, to infuse BofA with $500 million and ease one of the bank's biggest headaches. http://finance.fortune.cnn.com/2011/08/10/bank-of-americas-back-door-tarp/
1 Reply
Advisor

Re: we had to do something

What's to say? Prolonging the inevitable? Less unerving to bond holders, most likely. Kills the opprotunity for transparency to be acheived. I think we forget just how many important people are living in constant fear of that.