The moves will result in a pre-tax loss of $10.1 billion that will likely be taken in the fourth quarter from accounting charges taken on the value of the repaid preferred shares and the cancelation of the insurance plan. The new stock offering, meanwhile, will severely dilute erode the value of existing Citigroup shares.
Here’s a full-page ad I just found in the WSJ; it seems that Bank of America considers $760 billion in lending to be “a good start”. Me, I consider it to be “too big to fail” and a clear sign that BofA needs to get smaller, not bigger. I do wonder: is there any point at which BofA would consider itself to be too big? Judging by this ad, it seems the answer is no.
Many congratulations to Mark Whitehouse for writing an evenhanded and even positive article about walking away for the WSJ. He says that “a growing number of families are concluding that the new American dream home is a rental”, and talks about Shana Richey, a schoolteacher who took a $430,000 no-money-down mortgage in 2004 on which she was making payments of $3,700 a month.
Here’s the friend list of “Larry Bergman”, the Overstock-financed sock-puppet who helped to generate the notorious list of friends of those who are critical of crazy Overstock CEO Patrick Byrne. Gary Weiss has the details of exactly how that list was generated; although “Bergman” never asked me to be his friend, he friended a few friends of mine, and that’s all he needed to see my own friends list.
The co-optation of regulatory reform by Wall Street is an important story, and one that needs to be pressed at every point. It would be nice though, if the left could pursue that story without flaunting the same cavalier attitude toward the complexity of the economic challenges faced by the current administration that we are already so familiar with from the right.