Alex S. Gabor's  Instablog

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
  • Despite BAC's Sickness The Stock Price Keeps Rising While Whistleblowers Flock To Short It. 0 comments
    Feb 23, 2012 6:50 PM | about stocks: JPM, C, BAC, RBS, CS, FNMA, FMCC
    • The International Bank Activities Reform Commission has delegated a ton of information to the Nevada Bank Activities Reform Commission related to SEC Negligence related to allegations that Bank of America Branches in Nevada engaged in or allowed to be engaged in money laundering related to inflated real estate prices in Reno and Las Vegas, creating a hyper economic gambling haven for fraudsters and con artists in the real estate and casino industry.
    • Recently, Bank of America (NYSE:BAC) says it will stop selling new home loans to Fannie Mae (OTCQB:FNMA) and will deliver only loan modifications and refinancings to the GSE.
    • The reasons for this may be that Federal Government Officials at the highest levels of the United States Treasury, Comptroller of the Currency, (NASDAQ:OCC) the Secret Service, (SS) and other top level National Security Agency (NYSE:NSA) Personnel are looking into the massive fraud in which BAC allegedly continues to engage in.
    • BofA (BAC) said it will accelerate its expansion in China, adding as many as five branches in the country over the next 2-3 years from its current three outlets in Shanghai, Beijing and Guangzhou.
    • This is possibly due to a shift in BAC's Global Strategic Plans to cut down business operations in America because of the too numerous to document legal problems which BAC is experiencing from its inheritance of the MERS mess.
    BofA is likely trying to warm up to the Government of China for fear that rumors of the China Foundation advising government officials are seeking to ban BAC from doing further business in China due to the negligence and involvement it continues to have in the fraudelent mortgage industry planet wide.
    • Single family RE in Daytona Beach has reached Depression levels, writes Robert Sinn.
    • Other writers and instabloggers on the subject of BAC say, "With the cost of capital less than 5%, well, you do the math. Bank of America (BAC) owns at least 1/3 of single-family RE there, and may not have taken the marks yet - something to think about the next time someone says BofA is cheap on a price/book basis.
    • Unrelated to the IBARC/NBARC pending lawsuit, Ireland's Sealink investment firm sues a rack of big banks (including JPM, C, BAC, RBS, CS and more) for $948.8M in damages over residential mortgage-backed securities, charging material misrepresentation and omissions in underwriting standards.

    The China Foundation has been in talks with Chinese Officials over the future disposition of more than $130 Billion in Treasury Securities which it claims it has parked on behalf of certain Government Officials there.

    Other Officials at the China Foundation have refused to comment on the talks saying they are confidential and information about them has been illegally and falsely leaked.

    • BofA (BAC) and Barclays (BAC) grant Equity Residential (NYSE:EQR) more time to submit a bid for their 26.5% stake in Archstone, but at a higher minimum price of $1.485B. EQR will have until April 19 to bid, and may use the extra time to prepare an offer for all of Archstone; the remaining stake is held by Lehman. (previously)
      Comment!
      [M&A]
    • It is not clear why BAC even got involved with EQR, but as the mass of foreclosures that are hitting the market comes to fruition during the remainder of 2012 (29% of all sales are now REO foreclosed properties) the value of the stake will continue to plummet to fire sale levels.
    • The financial services industry may be seeing massive job cuts, but leading brokerage houses are still aggressively recruiting brokers working for rivals.
    • Merrill Lynch (BAC) is offering top brokers from rival firms upfront cash payments equal to 150% of the fees and commissions they generated over the prior 12 months, while UBS has raised its payment to 180%.
    • The fools at Seeking Alpha are saying, "It's not too late to buy Bank of America (BAC +1.7%), Second Curve's Thomas Brown surmises, "not because they're going to become a great banking company, but because the valuation of the company is just too low relative to even their weak earning potential... If we [can] just get it back to tangible book value, we've had a pretty good investment.""

    Just like Fannie Mae and Freddie Mac before their meltdown and nationalisation by the Treasury Department, fools ran up the stock prices of both firms way beyond their real book value, just before they both became penny stocks.

    To think that BAC will hit $30 is an insane assumption.

    "If I were George Soros I would short another two billion shares and cover it when it hits five bucks, then naked short another billions shares from the Cayman Islands." So sayeth and reflexively postulates the worlds first trillionaire, Gabor S. Acs.

    BAC IN FOCUSmore »

    BAC RELATED ARTICLESmore »

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    BAC PRESS RELEASES AND FILINGSmore »

    • BofA Merrill Lynch Analysts Say Russia Could Attract Significant Investment and Expertise in Offshore Development by Following Brazil's Example

      Business Wire (Jan 26, 2012)

    • Bank of America Announces Commencement of Cash Tender Offer for Certain Subordinated Notes

      Business Wire (Jan 19, 2012)

    • Bank of America Reports Fourth-Quarter 2011 Net Income of $2.0 Billion, or $0.15 Per Diluted Share Full-Year 2011 Net Income of $1.4 Billion, or $0.01 Per Diluted Share

      Business Wire (Jan 19, 2012)

    • BofA Merrill Lynch Fund Manager Survey Finds Gloom Lifting Over Global Growth Prospects

      Business Wire (Jan 17, 2012)

    • Merrill Edge® Offers Lower Fees and Enhances Online Platform

      Business Wire (Jan 17, 2012)

    BAC LATEST TRANSCRIPTmore »

    Earlier BAC transcripts

    BAC INSTABLOG POSTSmore »

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

    Additional disclosure: Seeking Alpha has a lot of good coverage on BAC.

    Stocks: JPM, C, BAC, RBS, CS, FNMA, FMCC
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