Thread: Bank Of America CDS Hits Escape Velocity

Bank Of America CDS Hits Escape Velocity

Submitted by Tyler Durden
08/22/2011 13:55 -0400

We take this moment from your busy schedules to update you that the CDS of Bank of America has reached escape velocity and has now entered suborbital traffic. At 370 bps, which is where the CDS is trading as of this moment, it is only 30 away from the 400 it hit in March of 2009 when the world had to be bailed out by the Fed: a ploy which this time will not work since every central bank has already doubled down to the hilt. In other news, expect bashing of evil bloggers who indicate BofA default risk spikes to commence momentarily as obviously it is only they who are to blame for BAC's upcoming bailout.

(red dot is where we are now)



http://www.zerohedge.com/news/bank-amer ... e-velocity

BofA Warns Upcoming "Desperate Measures" By Authorities Will Result In Another 2008 Market Collapse

Submitted by Tyler Durden
08/22/2011 14:32 -0400
Comments: 213

Last week we had Citigroup warning that the market bottom is about to fall out, as the Fed is more than likely to disappoint already very lofty expectations (according to various estimates from both Goldman and the second Tier banks, i.e., all of them, the market has priced in roughly $500 billion in QE3 already). Today, Bank of America, which may or may not be with us much longer, has taken this desperate alarmism several notches further, and is warning that due to the gridlock in both the fiscal ("fiscal authorities have bombarded the markets with a quadraphonic message of hopelessness") and monetary ("the Fed is out of bullets anyway") stimulative pathways, the likely outcome of anything from DC will be nothig short of a disaster. To wit: "rather than a repeat of 2010, when the Fed saved the day with QE2, we think we are moving closer to a repeat of 2008, when major policy errors devastated the economy." For once we actually agree with Bank of America: "In our view, the pressure to “do somethingâ€

Bank Of America = 6.66

Submitted by Tyler Durden
08/22/2011 11:06 -0400
Comments: 144

Can we all just fast forward to Tim Geithner making apocalyptic threats if he doesn't get TARP 2 to bail out Bank of America (which in turn will "help" Rick Perry) please?



http://www.zerohedge.com/news/bank-america-666

Avoid Securitized-Debt Risk on Chance of 2008 Repeat, Bank of America Says


By Jody Shenn
Bloomberg
Aug 22, 2011


Investors should avoid taking risk in all categories of U.S. securitized debt because American and European policy makers may damage financial markets as they respond to a slowing economy and government deficits, according to Bank of America Merrill Lynch analysts.

“Rather than a repeat of 2010, when the Fed saved the day with QE2, we think we are moving closer to a repeat of 2008, when major policy errors devastated the economy,â€

Bank Of America Scrambles To Defend Itself From Henry Blodget's Allegations It Is Massively Undercapitalized

Submitted by Tyler Durden
08/23/2011 12:35 -0400
Comments: 185

Early this morning, Henry Blodget penned a post titled "Here's Why Bank Of America's Stock Is Collapsing Again" http://www.businessinsider.com/bank-of- ... pse-2011-8 in which he used Zero Hedge data among other, to determine that the capital shortfall for the bank is between $100 and $200 billion. It took BAC exactly 6 hours to retort. Below is the full statement.

BANK OF AMERICA STATEMENT REGARDING HENRY BLODGET
2011-08-23 16:29:04.675 GMT

(The following is a reformatted version of a statement from Larry DiRita, a Bank of America spokesman. The statement was confirmed by the sender.)

Mr. Blodgett is making “exaggerated and unwarranted claimsâ€