Filed under 'Ken Lewis wants more of your money', the great taxpayer fleecing continues unabated. In Bank of America part II, the details are starting to emerge and they aren't pretty.
What makes this particular bailout so infuriating to so many (yes, this one is rasing eyebrows everywhere), requires a list to explain:
- It's the second time for BofA at the public trough. In late October, they got $25 billion in the first TARP handout.
- The meetings were held in private and NOT disclosed until this week. Where is the transparency for taxpayers?
- The stated need for the emergency funds and backstop was to soldify their purchase of Merrill Lynch. Excuse me, but they made this decision on their own and for the 'sole benefit' of their shareholders. They were under no pressure to do a deal.
- They paid an inflated price for Merrill and now they need you to provide a cushion. If memory serves, they paid a substantial premium to the market for Merrill's shares and were quickly pilloried for their valuation misjudgement. Ken Lewis' response to this accusation of having overpayed was typical CEO arrogance. He criticized the naysayers for not understanding the core value of the Merrill Lynch brand.
One slightly encouraging development is the whiff of anger and outrage that seems to be in the air. FINALLY. Let us hope that once stirred, taxpayer anger can be directed appropriately.
The details. Pretty much what we guessed last night when we first reported on this story. Amazing how they are getting the same amount as Citi this go-round. The numbers being floated are $20 billion from you plus a backstop, also from you, for $120 billion in bad loans. I will be susrprised if the backstop comes in at less than $150 billion when the papers are brought forth.
The most refreshing read on this subject today has been Henry Blodgett over at his site clusterstock. He is rightly outraged and we love his passion here at theDailyBail. Keep up the great work. Soon we will have momentum on our side.