Monday, August 8, 2011

Bank of America in Deep Doo-doo: "Here Comes TARP 2: Bank Of America Implodes, At $6.87, BAC CDS Up 20% To 260 bps As Bankruptcy Contemplated" (BAC)

The stock is down another 13.83% at $7.04.
Fortunately, according to Zeno's paradoxes, if the stock falls a percentage followed by a percentage followed by... it will never get to zero.

Unfortunately, the first refutation of the paradoxes was by Aristotle.
Here's the latest, from ZeroHedge:
With Bank of America investors finally realizing it is game over for the company as a going concern, at this point there are just two options for Brian Moynihan: the spin off of CFC as a bad bank, backstopped by the Fed, or, well, Chapter 11, which for a bank is essentially liquidation (and with CDS trading up 50 bps to 260 a bankruptcy seems increasingly inevitable)....MORE
"Meanwhile, in Bank of America news" (BAC)
Remember "Is Bank of America At Risk of a Death Spiral? (BAC)"
Is Bank of America At Risk of a Death Spiral? (BAC)

When I say recently I mean those three posts date all the way back to July 21, 2011.