JP Morgan May Take Over Bank Of America

[dixiegrrrrl]

So, whatcha think about this?
surprised?


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.

Read more: JP Morgan May Take Over Bank Of America - 24/7 Wall St. http://247wallst.com/2011/08/23/jp-morgan-may-take-over-bank-of-america/#ixzz1Vu0geeZV

[Demeter]

1. The Mind Boggles.

Take it over with what? Monopoly money? Government bailout?

PS: They are all fricking insane. It's like Terry Schiavo on the corporate level.

[muntrv]

2. This should inspire people to join a credit union.

[fascisthunter]

3. done

[Po_d Mainiac]

4. This seems to be the only write-up n/t

[Ruby the Liberal]

8. There have been a few, but all citing the same rumor

[Hawkowl]

5. Not surprised

I told one of my good friends two days ago that BAC was going under. Since BAC holds one out of three of every American's deposits, it can't be allowed to go under. It can't be nationalized, because...well..uh..Obama is not actually a socialist. So, the only other recourse is to merge it with another bank and have the Federal government guarantee the deposits.

Earthquakes, hurricanes, biggest bank failures EVER! European sovereign debt crisis, US government & Japan downgrades, dogs and cats living together! Gold is looking cheap again.

[bemildred]

6. Gotta avoid marking those "assets" down somehow.

A takeover will stall another year or two, 'til JPM-Chase pukes too.

The endgame is when the Fed buys out rescues the last bank in the USA.

[cascadiance]

7. Where is "Sherman" when you need it to break up these oligopolic monoliths!

[OllieLotte]

9. This had an interesting little twist today.

Warren Buffet comes up with 5 billion under very favorable terms a week after BAC said they didn't need any additional cash. Stock jumped 20% at the open only and closed up 10% for the day. Inquiring minds want to know...if BAC didn't need additional cash, why would they take in $5 billion at terms that aren't favorable to the bank?