If you think banks are too big to fail now, how about this--rumor is JP Morgan will take over BofA
Posted by
Brian (aka trav007)
Aug 24 '11, 11:46
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There is a rumor circulated on Wall St. that JP Morgan (NYSE: JPM) will take over Bank of America (NYSE: BAC) within the week. The government will support the deal with a $100 billion investment in preferred shares issued by the combined entity. Alternatively, the government may guarantee the value of a large pool of Bank of America assets. The word is that Treasury Secretary Geithner has discussed the transaction with JP Morgan CEO Jamie Dimon.The �merger� would completely destroy the value of BAC�s common shares.
The government feels that the deal may be necessary as Bank of America struggles unsuccessfully to close several transactions to bolster its balance sheet. The Wall Street Journal reported that Business Insider speculated that the financial firm will need to raise $200 billion which would be another possible event that would wipe out common shareholders.
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Responses:
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whoever thinks that is crazy -- nm
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Danedukenuuk
Aug 24, 12:03
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other than AT&T, when is the last time the government busted up something that was too big? -- nm
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crash davis
Aug 24, 12:00
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i give up....nm
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x
Aug 24, 11:58
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This part is pretty nutso:
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TFox
Aug 24, 11:51
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Where is x when we need him? -- nm
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The Ruiner
Aug 24, 11:50
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Holy Crap -- nm
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amoxy
Aug 24, 11:50
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just like 29! -- nm
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moles
Aug 24, 11:50
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wonderful -- nm
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The Ruiner
Aug 24, 11:48
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*headdesk* -- nm
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znufrii
Aug 24, 11:48
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yikes -- nm
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Epiphany
Aug 24, 11:48
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wow. -- nm
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Mel Profit
Aug 24, 11:47
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