BoA going into junk status...
(In my opinion, it couldn't happen to a better group of people: )
BoA going into junk status...
(In my opinion, it couldn't happen to a better group of people: )





well, maybe B of A can send agents to Mexico to track down all of the illegal immigrant credit card holders who owe them money !!! B of A has been big time into the illegal immigrant economy on both sides of the teller's counter, apparently !




^^^ no shit. When I walk into my local BOA branch, I can't read ANY of the signs. They are all in Spanish--not one sign in each language, or both languages on the same banner/sign... no... all in spanish.





^^^ well, this is the Moral Hazard that comes with US taxpayer funded FDIC insurance standing behind B of A's accounts. When things go right B of A makes big profits by being 'lender of last resort' to illegal aliens. When things go wrong, the FDIC picks up the tab ... and when enough bank losses have to be paid off by the FDIC to exhaust their comparatively tiny cash reserves, the US taxpayers will then get the bill.





Moral Hazard again. Under current FDIC rules, B of A has everything to gain and little to lose by attempting to profit big time from super high interest loans to illegal aliens ... whose savings accounts probably won't get paid off by FDIC when B of A goes belly-up eventually since they lack a valid Social Security number !!!I'm sure they're shedding tears of guilt and remorse.
Of course in a sane world without this Moral Hazard, B of A's stockholders would never allow bank management to dabble in such an inherently risky market segment. But when the 'rules of the game' say that they can keep all of the profits, but that the US taxpayer will make good on their losses, what else do you expect will happen ?
It would seem according to CNBC that Bank Of America is removing hand soap from the bathrooms to save money.
I worked for a software company that all of a sudden had no toilet paper. Being paranoid I always had some toilet paper once I heard what was going on - and a lot of entertainment from people asking to have a bit heh heh.
Anyhow, you can pretty much guess what happened to that company.
After the whole toilet paper fiasco (and watching the CEO drive around in a porsche), I really started to question American Capitalism.
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