If the folks from Tech Ticker are right, Bank of America may be too big to fail, but not too big to be a cry baby:
In mid-December, the WSJ tells us, Bank of America (BAC) went to Hank Paulson and threatened that if he didn’t give the firm another TARP bailout, they’d abandon the Merrill Lynch deal and cripple the financial system. Paulson then apparently spent more money he didn’t have, promising that he would rescue BAC yet again. (This a month or so after an annoyed Ken Lewis said he didn’t want or need the original TARP infusion).
There is only one word to describe this: Outrageous. Aaron and I discuss what happened in the accompanying piece with Joe Nocera, Business Columnist for the New York Times. Talking about the nation’s banking system, Nocera sums it up nicely: They’re “not on our side.”
Nocera- that pretty much sums it up. Tech Ticker may call it "outrageous", but Igor and I prefer "blackmail".
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i just about spit my coffee out in the car this morning. could’ve swore i heard cnn say B of A was gettin another 138 billion. then i thought “that’s just insane….i must have misheard what they said.” remember waaaaaaaay back when (like a year ago); when 138 billion sounded like all the money in the world. i’ve become desensitised. i wonder if i’ll be telling my grandkids “i remeber when you could go to the movies for 10 bucks” as i hand the kid at the counter the deed to my house to get in to the show.
The mob works in strange ways.
This is just maddening to me. I don’t get why we continue to bailout business for making bad decisions. Everyone is yelling the sky is falling but all they seem to be doing to me is digging a hole for us to drown in once it does fall.