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Alex S. Gabor
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Alex S. Gabor is freelance investigative journalist, bank stock analyst, and financial consultant. He does not personally get paid from anyone for anything published here at Seeking Alpha.
My company:
Church of Infinitology
My blog:
You, Me and the SEC
My book:
Confessions of a Sex Crazed Money Man
  • Open Short Interest in Bank of America Shares Up more than 100% Over Past Year 1 comment
    Jan 16, 2012 8:14 PM | about stocks: BAC, FNMA, FMCC, WMIH

    It doesn't look like George Soros Fund Management is listening or reading my messages about Bank of America.

    Since January of 2011, BAC, according to NASDAQ, has current open short positions of more or less than 146,194,541 shares outstanding as of 12/15/11.

    Over the past twelve months, between January 31, 2011 and November 15th, 2011 open short interest, according to the NASDAQ web site, almost tripled from 79 million shares to 238 million shares and the stock price dropped in that same time period by almost 66% from a high of $16.00 to a recent bump up to $6.06 from a 52 week low of $4.92 per share.

    According to several news sources, BofA (NYSE:BAC) and Mediobanca (OTC:MDIBF), the lead underwriters for UniCredit's €7.5B share offering, have reportedly agreed to buy 10% of the offering, or €750M, should it fail completely, and a smaller amount of shares if the offering is only partially successful. UniCredit was off 36% last week. The big question becomes where is BAC getting the money to buy the share offering?

    Recently the White House had denied the rumor of a massive mortgage refinancing plan, after a proposal to force Fannie Mae, Freddie Mac and BofA into a merger was submitted online to the government and the story was later censored by Yahoo Associated Content editors. 

    The chatter had sparked BofA to the top of the S&P leader board and seemed to pull the rest of the market out of the doldrums. It was the fifth straight up day for BofA shares, something that never happened in 2011. 

    Gabor S. Acs, the man behind the International Bank Activities Reform Commission says, "there seems to be a lot of short covering going on lately". BAC seems to be in play for the rest of 2012 as the government tries to figure out how to create a better national mortgage market. The one we currently have has only been band aided up and is still severly wounded by all other perceptions and indications of fundamentals in the market."

    Chatter about an Obama plan for mass mortgage refinancings  has heated up again, with speculation the President might appoint a "housing advocate" as head of the FHFA, whose current chief has been lukewarm about such an operation.

    The Infinite Freedom Foundations has proposed the launching an international zero interest mortgage market between members of the European Union, Canada and the United States which would ensure the future of affordable housing for all of humanity.

    According to government sources, the Obama administration could get their "own man" in there without Senate approval using the same sort of recess appointment just used to install the head of the CFPB. It would appear that Gabor S. Acs, officially the world's first trillionaire, who has been trying to reach George Soros for years, is now vying for the position. Gabor was recently invited by the Obama Administration to have dinner with the President and his Wife.

    According to Citigroup's own Keith Horowitz who has reiterated a Buy rating on Bank of America writing that "up to an additional $32B could be needed to address mortgage-related losses, but "when you factor in the earnings power and the time it will take to resolve these issues, it appears to be manageable. Shares are already pricing in a large equity offering", Horowitz adds. 

    That figure conflicts with earlier reports by government officials and the Bank Activities Reform Commission which indicates BAC would need to raise more than $100 Billion in fresh capital to maintain international equity standards for safety and solvency.

    Recently Bank of America (BAC) officials disputesd its LA Times portrayal as "putting the squeeze to small businesses: "What we've done is not cut or close credit lines for small business clients across the board, but rather... a very, very, very small percentage of customers, and just put into place standard practices such as a maturity date and an annual renewal process." Thousands of industry watchers aren't buying it. 

    Gabor S. Acs claims that in 1982 Bank of America defrauded him and his companies of more than a billion dollars in  swiss francs which BAC had agreed to convert into 14 per cent interest bearing dollar denominated certificates of depost. "Instead they took the money for themselves and stole the arbitrage profits from his company," says Acs.

    Many years later Parmalat collapsed and there has been evidence to indicate tha Berlusconi may have been involved in a five billion dollar scam which laundered as much or more out of Italy through BAC, which is also the prime banker for the Vatican..

    In another story according
     to BTIG's Mark Palmer, "Bank of America (BAC) may have to pay MBIA (NYSE:MBI) $2B to settle a lawsuit filed by the latter against BofA's Countrywide unit, following last Tuesday's ruling. MBIA has already reached a settlement with Morgan Stanley (NYSE:MS) over a similar dispute. 

    BAC has been named as a defendant in a global Five Hundred Trillion class action being filed in the International Court of Justice in the Hague, for money laundering, fraud and the creation of a false market in various securities, which the SEC is yet to investigate among claims filed by the Plaintiffs.

    George Soros, are you paying attention to the real book value of Bank of America. What if BAC went the same way as washington mutual which was sold to JP Morgan for less than three cents on the dollar of assets, what is BAC really worth in that scenario? Merrill Lynch and Countrywide both underwrote and guaranteed more than two trillion dollars in phony liar loans before being forced to merge with BAC by thos regulators behind the scenes.

    Soon those same regulators are going to need to pull another rabbit out of their dwindling spiral of a black hole unless Obama stands up like Andrew Jackson to the Bankers and turns their tables over like Jesus Christ himself.

    Sources and Links:

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: BAC, FNMA, FMCC, WMIH
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  • Alex S. Gabor
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    Author’s reply » Since posting the above Instablog
    BAC has risen from around $5.00 to just over $8.00 and is now settling back into bear territory for the offshore hedge funds Soros Fund Management Quantum Fund Cayman Islands New York City George Soros Soon to be the Richest Man in the World. Keep shorting till it reaches a penny per share. Then cover it all up with government mandated mergers with fannie and freddie and get the kluge mortgages out of the pipeline. Then you will see housing recovery.
    14 Feb 2012, 10:38 PM Reply Like
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