Tuesday, October 27, 2009
I heard a very disturbing rumor yesterday at the Castle Sidewalker scuttlebutt. I normally don't give much credit to rumors, but as you will see this one may have some legs.
The word out there is that Bank of America (BAC.N) may need some more money to stop from going belly up. It would be no great surprise to me, after their acquisition of Countrywide and then their forced ingestion of Merrill Lynch; I'm shocked they have managed to survive this long!
Previously I have commented about Bank of America's CEO Ken Lewis when he testified to Congress in the post Flaming Pantaloons in D.C. It came down to the fact that either Mr. Lewis, or Bumblin' Ben Bernanke the Federal Reserve Chairman was telling a massive whopper about the Merrill Lynch transaction. At the time it was a tough call to make, as Bumblin' Ben has a great portfolio of whoppers himself, including but not restricted to "...we have sub-prime contained" and denying the recession until we were a year into it.
It looks like Bumblin' Ben won that encounter as Ken Lewis is stepping down at the end of the year to concentrate on enriching a host of lawyers, as they try to defend him from the raft of lawsuits headed his way.
So as you can see there is no honor amongst this bunch of thieves. With their track record I can't dismiss any rumor I hear in the financial sector.
Will Bank of America be dipping their hand into my pocket once again? Hopefully not. Can I guarantee it won't happen? Definitely not!
-Current balance $24.10