Bank of America and the Contrywide mess, we will see a lot more loans called in by BOA.

[sarcasmo]

Bank of America will be calling in credit lines and shutting many doors in the near future, it's going to get much uglier before it gets better.




Promised credit lines

http://www.nytimes.com/2008/05/09/business/09loan.html?_r=1&ref=business&oref=slogin

snip< Big banks like Citigroup, JPMorgan Chase and Bank of America have each promised hundreds of billions of dollars in credit lines to companies.

Bank of America alone had more than $400 billion of loan commitments outstanding at the end of last year, according to the company’s financial filings. Those figures excludes tens of billions of dollars in additional credit lines that the banks have promised consumers and homeowners.


http://techdirt.com/articles/20081119/0256322879.shtml

snip< Bank of America has taken steps to cover up the original we-don't-need-no-stinking-America sentiment of its patent application for Country Assessment, which described BofA's innovative way of dealing with the problems of 'a typical American employee demands a high salary, good benefits, a good work environment, vacation time, and other job-related perks' -- relocating jobs to India or the Philippines.




http://www.examiner.com/a-1449448~Bank_of_America_PAC_money_behind_Dodd_s_Countrywide_loan.html


snip< He was talking about the bill whose Senate version has been brought to the floor this week by Sen. Chris Dodd, D-CN, and Sen. Richard Shelby, R-AL. Dodd-Shelby would let mortgage lenders off the hook for bad loans, shifting the burden ultimately to taxpayers. Dodd has received approximately $70,000 in campaign contributions from Bank of America in the last year-and-a-half.


http://news.medill.northwestern.edu/chicago/news.aspx?id=101143&print=1



snip<
More than 1,200 phone calls from anxious homeowners have flooded the Illinois attorney general’s office since last week’s announcement that the nation’s biggest mortgage lender agreed to refinance the home loans of roughly 11,000 Illinois borrowers and 400,000 nationwide.

“This settlement holds the No. 1 mortgage lender in the country accountable for deceptively putting borrowers into loans they didn’t understand, couldn’t afford and couldn’t get out of,” Lisa Madigan, the attorney general, said in announcing the settlement last week. “These are the very practices that have created the economic crisis we’re currently experiencing.”




http://mediabiz.blogs.cnnmoney.cnn.com/2008/09/28/news/companies/tully_lewis.fortune/index.htm?postversion=2008092908


snip< The banks, in his view, are just as weak as the consumer. As a result, they'll be hard-pressed even to satisfy the demand for mortgage, car, and credit card loans. "We'll see big write-downs all the way through next year that won't abate until 2010," says Lewis. "Over that period a number of big banks won't have enough capital to make a lot of loans." Lewis sees a rare opportunity to grab market share by extending credit while his competitors languish on the sidelines.