BA stock offering chutpah
yellowkid
Posts: 5,486 ✭
How about the B of A doing a stock offering to pay the government back,"let's churn things fella's so we can boost our salaries" A new definition of "chutzpah."
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<< <i>How about the B of A doing a stock offering to pay the government back,"let's churn things fella's so we can boost our salaries" A new definition of "chutzpah."
If it pays back the debt, it can begin expanding its business without the albatross around its neck and the rest of us aren't obligated to its success as well.
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<< <i>How about the B of A doing a stock offering to pay the government back,"let's churn things fella's so we can boost our salaries" A new definition of "chutzpah."
If it pays back the debt, it can begin expanding its business without the albatross around its neck and the rest of us aren't obligated to its success as well. >>
Yeah but with a stock offering? And it's only being done so they can increase their compensation, I think it's just "business as usual," more of the same crap that got them in trouble to begin with, I find it disgusting.
PS Don't get me wrong, I surely want the money paid back, but using " a complex stock offering arrangement"( and I guess GS is doing it also, GS, who were using TARP money for bonuses) is just more of type of financial "finesse" that caused the problem.
Unfortunately TARP and "too-big-to-fail" has already proven that we the taxpayers will be there when BoA falls on its sword yet again. By paying back money via stock dilution they are still saddling shareholders and ultimately taxpayers with their debt. They are carrying between $30-$40 TRILLION in otc derivatives that will come back to hurt them just as bad as the first shake out did. Just because the FASB caved in to political pressures and allowed these guys to mark to myth didn't fix their balance sheets. Taxpayers will get another opportunity to apply big time ransom money. BoA is in no better shape finacially than they were in Sept 2008, only now they KNOW they have the govt backing them implicitly. Time to be reckless once again but first things first.....get those bonuses paid asap!
roadrunner
Camelot
its also a sign that the economy is coming back to life.
those of you who invest in the precious metals want a strong economy, because its the strong economy that will power demand for gold, silver and platinum.
so far, gold went up because of fear. now you want a strong economy to increase demand for gold for jewelry and electronics, same for silver, and you want auto sales to power the demand for platinum.
fear can push up the metals prices only so much-- then you need a strong economy to do the rest.
for those of you into silver -- a strong economy is definitely needed. and same for platinum.
www.AlanBestBuys.com
www.VegasBestBuys.com
I disagree with this for gold. Good times are BAD for gold prices. See as an example the period from the early 1980s to late 1990s when we generally had a strong economy and gold stagnated/fell in price. Jewelry demand does not drive gold prices; investment demand does so. Investment demand for gold is strong when the economy is unstable.
I agree with your statement as regards silver and platinum, and also palladium, though you didn't mention it. Those are primarily industrial metals with a smaller investment component, relatively speaking, than gold. A stronger economy should help those metals.
No consequences for bankers. Big consequences for taxpayers. Very simple.
Jail would be the preferred alternative.
those of you who invest in the precious metals want a strong economy, because its the strong economy that will power demand for gold, silver and platinum. so far, gold went up because of fear. now you want a strong economy to increase demand for gold for jewelry and electronics, same for silver, and you want auto sales to power the demand for platinum.
Monetary policy also influences all of the metals. At this point, they all have some price components that are tied to the dollar, and demand for most commodities, including precious metals, is keyed now to the dollar and the humongous US Debt overhang.
Supply also has a strong tendency to drive precious metals prices. We are seeing the mines in South Africa having continual problems with electrical supply, cooling, and ventilation as they go deeper into the ground. This is affecting both gold and platinum supplies.
Silver supply is also somewhat tenuous, because the richer deposits are depleted and the bulk of silver supply is mined along with zinc, lead and gold - and is dependent upon a strong economy and a strong demand for those other metals.
I knew it would happen.
<< <i>So are they issuing/offering stock to pay off "OUR" bail out money? If so how does that work? >>
For them very well!
<< <i>Im surprised any of you would oppose what BofA is doing. They are transferring risk from taxpayers back to the private sector and paying off their debt to the taxpayers with private sector money. Thats very good. it gets government and the taxpayers out of the private sector.
Alan I'm surprised that you don't see the transparency in their scheme, floating new stock is just diluting their asset base, more of the financial chicanery that is responsible for the mess. Pay "us" back, but with profit earned "the old fashioned way," not with just one more method of finessing the system.
Unfortunately, no. The Communists have already declared they will keep the money and waste it, not return it to the taxpayer.
I'm not saying I don't think it's somewhat better than leaving it like it is now. But I don't think it's much more than smoke and mirrors...robbing Peter to pay Paul, etc. BoA hasn't fixed a thing, reduced their real risk or their debt load. All the major risks that existed before are still there. Eventually it will fall back on the taxpayers as we go through another round of saving the banks. In case you didn't notice, losses from too big to fail companies in the private sector are now funded by the public sector. The private sector keeps the profits. After October 2008, the line between private and public sectors is essentially gone...at least when it comes to paying back debts and losses.
roadrunner
<< <i>Im surprised any of you would oppose what BofA is doing. They are transferring risk from taxpayers back to the private sector and paying off their debt to the taxpayers with private sector money. Thats very good. it gets government and the taxpayers out of the private sector.
. >>
That's what I was suggesting. Not sure why people oppose this offering.
<< <i>Im surprised any of you would oppose what BofA is doing. They are transferring risk from taxpayers back to the private sector and paying off their debt to the taxpayers with private sector money. Thats very good. it gets government and the taxpayers out of the private sector.
its also a sign that the economy is coming back to life.
those of you who invest in the precious metals want a strong economy, because its the strong economy that will power demand for gold, silver and platinum.
so far, gold went up because of fear. now you want a strong economy to increase demand for gold for jewelry and electronics, same for silver, and you want auto sales to power the demand for platinum.
fear can push up the metals prices only so much-- then you need a strong economy to do the rest.
for those of you into silver -- a strong economy is definitely needed. and same for platinum. >>
I agree with all of this. Plot gold vs interest rates, you will see a near perfect corrolation. Central banks raise interest rates to cool economies before inflation takes root. If interest rates go up, gold will go up. We saw that happen in the last 2 months with Australia raising rates. Eventually the US will raise rates and gold may be rising in anticipation of this. Gold isnt going anywhere without a new "fear". And that fear will be inflation.
Gold has been hyped to the same extreme as "house flipping" and Y2K. Major fiat currencies are not going to fail in any of our lifetimes. Gold has had a great 9 yr, 5 fold run. Be happy with that.
Knowledge is the enemy of fear
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<< <i>Im surprised any of you would oppose what BofA is doing. They are transferring risk from taxpayers back to the private sector and paying off their debt to the taxpayers with private sector money. Thats very good. it gets government and the taxpayers out of the private sector.
. >>
That's what I was suggesting. Not sure why people oppose this offering. >>
If you read the other posts you would find out.
anyway, what BofA has done is sold stock to the public and the revenue from the stock sale is being used to pay off the Tarp loans. All well and good. We want companies to be able to sell stock again, we want the Tarp money paid back.
Diluting the shares of BofA?? yes, of course it does immediately. Frankly, I have no sympathy for BofA shareholders because BofA has high credit card rates, a shortage of safe deposit boxes (can't give me the free box they advertised when I opened CDs) and a bunch of rude tellers.
However, the goal for BofA is to grow the profits of the bank as the economy continues to improve and this will reward the buyers of the new shares and existing shareholders too.
thanks to those of you who agree that a stronger economy will help the metals.
www.AlanBestBuys.com
www.VegasBestBuys.com
<< <i>Im surprised any of you would oppose what BofA is doing. They are transferring risk from taxpayers back to the private sector and paying off their debt to the taxpayers with private sector money. Thats very good. it gets government and the taxpayers out of the private sector. >>
We can't do a thing until November 2010.