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Thread: Move to Repay Aid Helps Bank of America Shed a Stigma

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    Move to Repay Aid Helps Bank of America Shed a Stigma

    Less than a year after grasping two multibillion-dollar bailouts from Washington, a resurgent Bank of America announced on Wednesday that it would repay all of its federal aid, underscoring the banking industry’s swift recovery from the gravest financial crisis since the Depression.
    http://www.nytimes.com/2009/12/03/business/03bank.html

    Let's see, BoA'a CEO resigned and hasn't been replaced yet. This move wouldn't be because no one will come to work for BoA when they are subject to a salary cap from big GOVCO would it?
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    Re: Move to Repay Aid Helps Bank of America Shed a Stigma

    Quote Originally Posted by Phoenix View Post
    http://www.nytimes.com/2009/12/03/business/03bank.html

    Let's see, BoA'a CEO resigned and hasn't been replaced yet. This move wouldn't be because no one will come to work for BoA when they are subject to a salary cap from big GOVCO would it?
    some repubs are so negative.

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    Re: Move to Repay Aid Helps Bank of America Shed a Stigma

    Madoff for Social Security Administration commissioner

    do you want to eliminate soc sec?

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    Re: Move to Repay Aid Helps Bank of America Shed a Stigma

    Quote Originally Posted by Phoenix View Post
    http://www.nytimes.com/2009/12/03/business/03bank.html

    Let's see, BoA'a CEO resigned and hasn't been replaced yet. This move wouldn't be because no one will come to work for BoA when they are subject to a salary cap from big GOVCO would it?
    Let me get this straight,

    BoA got $45 billion from the government b/c they were in the death throws of going under. Less then a year later, they can afford to payback $45 billion?

    That just doesnt make any sense. What am I missing here?

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    Re: Move to Repay Aid Helps Bank of America Shed a Stigma

    Quote Originally Posted by scottsoperson View Post
    some repubs are so negative.
    what is negative about that statement?
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    Re: Move to Repay Aid Helps Bank of America Shed a Stigma

    Quote Originally Posted by scottsoperson View Post
    Madoff for Social Security Administration commissioner

    do you want to eliminate soc sec?
    While it would not hurt my feelings to do away with SS, that statement is actually a testament to the fact that Madoff was very successful running a Social Security like program.
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    Re: Move to Repay Aid Helps Bank of America Shed a Stigma

    Quote Originally Posted by TheHat View Post
    Let me get this straight,

    BoA got $45 billion from the government b/c they were in the death throws of going under. Less then a year later, they can afford to payback $45 billion?

    That just doesnt make any sense. What am I missing here?
    Maybe, maybe not. I think their main problem was cash flow. I think the additional money from GOVCO was a "just in case" scenario. The government also presented the money as "take it now or you will not get any" so the safe move was to take it.
    From the ashes.

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    Re: Move to Repay Aid Helps Bank of America Shed a Stigma

    Quote Originally Posted by Phoenix View Post
    Maybe, maybe not. I think their main problem was cash flow. I think the additional money from GOVCO was a "just in case" scenario. The government also presented the money as "take it now or you will not get any" so the safe move was to take it.
    But didnt BoA just sell off $19 billion in assets to help payback the $45 billion?

    How come they were allowed to take our money, when they could have just sold off $19 billion in assets to begin with?

    Something is not right with this. Obviously BoA was not on the verge of going under, if they can afford to sell off $19 billion in assets to help payback government.

    They could have simply liquidated the $19 billion they sold off to pay the government back and used that as cash flow.

    I think this is another story showing how we have been had.

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