BofA (BAC) said the costs of foreclosure delays have been "grossly distorted," but Dick Bove...

BofA (BAC) said the costs of foreclosure delays have been "grossly distorted," but Dick Bove isn't convinced. He thinks banks could face losses of more than $80B, not so much because of a halt in foreclosures but because of the investor and homeowner lawsuits that will almost certainly follow.
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Comments (19)
  • TraderMark
    , contributor
    Comments (2421) | Send Message
    If you click on 'yesterday's' market currents you get a photo of a fighter jet and nothing else. Perhaps the SA staff is signaling something to us.
    16 Oct 2010, 02:44 PM Reply Like
  • Jon G
    , contributor
    Comments (26) | Send Message
    BAC management -- is this like Lehman's managment telling us everything is fine?
    16 Oct 2010, 02:49 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2229) | Send Message
    Is this the very same Dick Bove who just last month was on CNBC proclaiming that the big banks were out of the woods and their future looked bright? How did he do on that prediction? The only person who consistently over the last three years has been Debbie Downer on the big banks has been Meredith Whitney. Maybe, just maybe she does know something.
    16 Oct 2010, 03:45 PM Reply Like
  • BetTheHouse
    , contributor
    Comments (147) | Send Message
    Exactly. March 29, 2010: "Dick Bove Recommends Buying Citi Now, Raises Price Target to $8.50"
    16 Oct 2010, 03:53 PM Reply Like
  • Robin Heiderscheit
    , contributor
    Comments (3300) | Send Message
    Dick Bove has been wrong on banks except for about fifteen minutes towards the end of the bear market when he belatedly turned bearish and about during the period from March of 2009 and April of 2010 when the stocks (roughly doubled). Why he is a cult figure I have no idea.


    With that said, BAC 11 Jan. puts look good here with the breakeven at 10.40.
    16 Oct 2010, 07:20 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
    If that's the case, that man turning bearish ought to be a buy signal.
    16 Oct 2010, 10:50 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2229) | Send Message
    At least wait until Tuesday when BAC releases its third quarter results. With the stock trading at $12.00 and earnings projected at fifteen cents you might see it head down toward $10.00 before you see it back at $13.00. Of course you need to be aware that the stated book value is about $21.74. Stated but not verified.
    17 Oct 2010, 06:33 AM Reply Like
  • talbano
    , contributor
    Comments (324) | Send Message
    Glad you said it, I thought I was loosing my mind:)
    17 Oct 2010, 11:10 AM Reply Like
  • allycatt2
    , contributor
    Comments (78) | Send Message
    Has Eric Holder has come out of hiding? The bank executives have committed trillions in fraud and our brilliant AG has declared that he's gonna throw the book at California weed smokers.


    Hey Eric, the other rats are swimming for shore, get a move on.
    16 Oct 2010, 08:47 PM Reply Like
  • Lexus Admirer
    , contributor
    Comments (2) | Send Message
    When the big banks have to start buying back the misdocumented loans they to sold to Fannie and Freddie, tens of billions will be involved. Could be a boon to taxpayers at the sloppy banks and their shareholders expense.
    16 Oct 2010, 10:52 PM Reply Like
  • Mr. Ed, Jr.
    , contributor
    Comments (745) | Send Message
    Eric Holder and this administration will try to keep the lid from flying completely off until after the election, but this is starting to look like, if I may quote our Vice President, " .... a big f-----g deal."


    We will hear from banksters, politicians and media shills that this has to be kept in "perspective" because, after all, the people who were foreclosed on were not paying their mortgages, so blah, blah, blah. JPM's Jamie Dimon and CNBC's Diana Olick are way out in front, trying to swing the conversation in that direction.


    Never mind that massive fraud has been committed, and that the banksters have deliberately and knowingly presented false documents to our courts.... Pay no attention, they will tell us, because the banksters only committed this document fraud on people who did not pay their mortgage (and their customers who bought that securitized garbage). Forget about the underlying securitization scheme that started all of this-- at least until the TBTF are in need of another bailout. Don't worry about any of this "paperwork snafu".


    The many layers of the onion-- the fraud onion-- are about to be peeled back. This onion is going to stink the place up. Bigtime.
    16 Oct 2010, 11:22 PM Reply Like
  • Steve Soden
    , contributor
    Comments (833) | Send Message
    How can a poor person who lost their home come up with the Money to sue a bank?
    The only ones that could would be the Deadbeats that left their homes with the ability to pay.
    Why didn't Uncle Sam buy these toxic assets?


    It appears the Banks will end up with our cash and The Property.
    Soon we'll be paying off another train wreck with The Banks and Government at fault as usual.
    17 Oct 2010, 11:14 AM Reply Like
  • EMS
    , contributor
    Comments (586) | Send Message
    Contingency...get it ?
    17 Oct 2010, 12:06 PM Reply Like
  • Hendershott
    , contributor
    Comments (1842) | Send Message
    Deliberately and knowingly submitted false documents to the court. There ought to be a law. Oops.
    17 Oct 2010, 11:15 AM Reply Like
  • Elitemaster
    , contributor
    Comments (13) | Send Message
    The hype has exaggerated the banks losses on this robo mortgage issue. Even if the final cost to all of this for the banks is significant, which it prob wont be, the banks always find some way to fudge the numbers with enron accounting tricks to provide decent quarter earnings, while all the pundits are screaming about bank losses on this fiasco, look to earnings to beat and BAC rallies while everyone is left scratching their head as usual ('whaaa, in the midst of all this mess, how in the world is the stock rallying?!') :P
    17 Oct 2010, 05:30 PM Reply Like
  • stmcca02
    , contributor
    Comments (195) | Send Message
    BAC has got to be a heavy extra "load up the truck" buy sometime.


    I'm half-bought into the pot now, even so, probably a week or so early.


    This is "special situation" speculation at it's best!
    17 Oct 2010, 10:49 PM Reply Like
  • talbano
    , contributor
    Comments (324) | Send Message
    Anyone see that story about the family that is moving back into "their" foreclosed house. It is horrible. These People borrowed 2x times as much a their house and are now complaining that they are getting foreclosed on-
    Whatever happen to personal responsibility?
    I hope these people get kicked out for good and I am glad BAC is resuming the foreclosure process. Tired of bailout nation.
    Wonder why our jobs are leaving, Americans have become a bunch of self entitled jerks who always try to something for nothing.
    19 Oct 2010, 12:03 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2229) | Send Message
    "Whatever happen to personal responsibility? "


    This might be the most important question of our day needing to be answered. My Father, who passed away a few years ago, would be appalled at the lack of personal responsibility in today's society.
    At the height of the original Great Depression, my Father accompanied his Father, in a trip to the Bank to hand over the keys to their house because my Grandfather had not had a full time job for a couple of years and they had run out of money. The Banker refused to take them because there were so many people in that situation the Bank could not handle all of the houses. The Banker asked my Grandfather if he was working at all and he said yes occasionally part time. At that point the Banker said send this young man down every Friday with whatever you can spare and we will work this out. Several months of this went by and my Grandfather got full time work as a machinist. He and five other men traveled two hours each night, each way, to work a midnight to eight shift. After a few more months of making weekly payments the Banker told my Father to tell his Father that they had caught up and he need not come back until the first of the next month. My Father never forgot this and he never let his children forget and we, his children, are doing our best to teach this lesson to our children.
    19 Oct 2010, 05:55 AM Reply Like
  • stmcca02
    , contributor
    Comments (195) | Send Message
    Robosigning forclosures isn't as bad as robosigning people into there homes...


    Oh well.


    At least it looks like Skynet isn't going to win this year.
    20 Oct 2010, 06:26 PM Reply Like
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