Did BAC know what they were doing?
CFC falls below $18 BAC paid for
Started by
mike123
, Sep 07 2007 09:11 AM
3 replies to this topic
#2
IndexTrader
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Posted 07 September 2007 - 09:27 AM
Hey Mike:
Just thought I'd point out that BAC bought a convertible preferred issue, not the common you just quoted. The conversion price was $18. That said, I doubt that a $.10 move under the conversion price set off too many alarms in the board room.
IT
#3
humble1
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Posted 07 September 2007 - 09:37 AM
right !
they won't worry until it's about $1.50 OR zero. the nytimes recently had a great long article about the inner workings of countrywide. these people were TRAINED to hype and flimflam the unsuspecting. they crowed about helping minorities while they were ripping them off right and left.
the recent praising comments from the head of the home loan bank board show just how high up these type of predatory practices have become accepted.
#4
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Posted 07 September 2007 - 10:34 AM
right !
they won't worry until it's about $1.50 OR zero. the nytimes recently had a great long article about the inner workings of countrywide. these people were TRAINED to hype and flimflam the unsuspecting. they crowed about helping minorities while they were ripping them off right and left.
the recent praising comments from the head of the home loan bank board show just how high up these type of predatory practices have become accepted.
There is a question in my mind as to whether these subprime borrowers were "flimflammed"....NYTimes notwithstanding. Many of these subprime borrowers have a history of not paying. That's why they are/were subprime to begin with. I think the subprime industry was stupid to made the loans they made to the people they made them to. And the borrower? Let's not feel to sorry for him. It's just one more example in a long line of examples of not paying. Were they "flimflammed" on the terms? I think a case might be made that regardless of terms, they had no true intent to pay to begin with. He was given an opportunity to own a house, which under any other type of loan he would never have had.
If they were lied to, then of course there's no excuse for that. And that would in fact be fraud, and the loan could be reversed. But having seen many, many closings, I can tell you loan terms are disclosed by the paperwork, the closing agent goes over them again as they sign. People who have a history of not paying usually don't pay a great deal of attention.
That has nothing though to do with BAC and their preferred purchase.
IT
