Bank of America’s new bailout
As I expected all along, Bank of America just got a new bailout, cautiously hidden by the government as “purchasing” servicing rights to Countrywide fraud-ridden mortgages.
Suffering from a beaten up stock – -40% – this year, Bank of America is in desperate need for cash and it shouldn’t come as a surprise to anyone outside the political partisan charade that the government was going to come to the rescue.
Fanny Mae, the corporate toxic asset garage owned by taxpayers, is now responsible for millions of deteriorating troubled mortgages originally serviced by BofA in exchange for $500 million.
And meanwhile, we are all supposed to think we need tighten our belts and play our parts in managing the country’s debt.