Tuesday, 9 August 2011

Speculative Update: Bank of America looking very jittery

* Please note that this post is speculative only. The Weekly CryGest is not responsible for anything that results due to this (or any other, to be honest) post.

Bank of America Corp. (BAC) fell over 20% in yesterday's trading. We don't mean to predict anything here at The Weekly CryGest, but we think there could be a significant problem arising at the bank mainly due to record claims from Fannie and Freddie over soured mortgage loans.

Exacerbating the problem is that Freddie Mac has already asked the government for $1.5 Billion and with government finances the way they are, it is very possible that Freddie and Fannie would be 'urged' to organize as much of its funding requirements from the private sector.

Again, we're not saying something will happen, but, we think something might be brewing at Bank of America. And if something happens, remember Lehman?

1 comment:

  1. BofA was down again in yesterday's trading. Something may be brewing there. Don't know if global governments can save the financial system again if another Lehman style crash of a too-big to fail bank occurs.