Bank of America to write-off 3 Billion Dollars (sic) tied to mortgage bets

[underpants]

Source: Yahoo

14 minutes ago



WASHINGTON (AFP) - Bank of America will likely have to write off around three billion dollars in troubled debt related to subprime mortgages, a senior executive warned Tuesday

Bank of America's chief financial officer Joe Price said the bank expects to write off three billion dollars in pre-tax debt largely linked to such mortgages during the fourth quarter, according to a securities filing.

"These are not normal times," Price said, according to the transcript.

Bank of America's top financial officer also cautioned that the financial giant might have to absorb further write-downs if market conditions worsen.



Read more: http://news.yahoo.com/s/afp/20071113/ts_alt_afp/usbankingcompanybankofamericachina_071113210056;_ylt=Aok9fyIsLHQoCHhxXA78UwUFO7gF

[angstlessk]

1. what happened to the homes for which those debts were written off?

I am sure the owners who owed the debt are not still living in them??? distributed as bonuses to the managers???

[Bo]

2. They are going to sell the houses at @15-40 cents on the dollar

.....why don't we just lower the mtg amount and let the people stay in them?

[angstlessk]

4. or even take over the mortgage and charge rent...would be cheaper

for the banks than kicking out the people and selling the property??? so the people don't own it any longer, the rent is affordable and the homes are now assets for the bank??

I can see why they can't just forgive the debt of the owner, but they can reduce the harm to tens of thousand if not hundreds of thousand homeowners??

[Lance_Boyle]

5. because that can't be written off. n/t

[Festivito]

9. But, but, as homeless, you can deny their provisional ballots.

Less voters, more publiCONs.

Some freeper somewhere just had a warm fuzzy feeling.

[whistle]

3. $5.0 billion is a drop in the sea of over valued debt these banks have on the books

....where Deutsche Bank reports it may write off $500 billion and estimates of potential write offs Central Bank backed Hedge Funds could run to over $22.0 Trillion, that's right with a "T"! The financial tsunami is coming it seems and can't be stopped short of the U.S. Congress passing Homeowner and Charter Bank foreclosure protection legislation.

Right now all of the action to date by the Federal Reserve and Central Banks has been to use congressional and presidential power bailouts to save the hedge fund speculators who were the real fraud con artists who created the mess.

[closeupready]

8. I'd be interested in a link about this Deutsche Bank report.

thanks.

[PetrusMonsFormicarum]

6. If there is a bailout

of subprime mortgage holders I'm going to be one pissed off customer.

I bought a house within my means. I secured a mortgage that I knew I could pay, even if I was canned and had to start a new job with less income. I make my payments on time, every month. If some chowderheads overextended themselves to buy some horrid McMansion, took a mortgage with an adjustable rate because they thought that procrastination is a lifestyle choice, and now they expect to have their debt forgiven, then they are in for an even more rude awakening than they had the first time they opened their mortgage statements and discovered that the bank wants its usual cut plus the monthly payment on the fucking Lexus.

[ret5hd]

11. Oh, I'm sure your ire is their #1 concern.

pfffft!

[gratuitous]

7. "These are not normal times"

Not by a long shot, Mr. Price. You didn't think this was going to bite you and the rest of your loan shark buddies in the keister. You figured you'd skin a bunch of po' folks who didn't know any better, maybe repo a few choice properties that were still worth something and sell them again for even more money. Instead, so many people defaulted that it's actually going to catch up to your balance sheet.

And those lucky ducky po' folks get to just walk away from their overvalued properties. Sure, they're living in cardboard boxes and their finances are ruined for the foreseeable future, but you'll have to spend the next year piloting last year's yacht into the marina! And the snickers from the other overrich fatcats is something no one should have to bear, you poor thing.

[NeoConsSuck]

10. I wish it were more.

This was the corporation that decided to raise it's ATM fees in selected markets to recoup some of the money it lost in it's SIV investments.

In other words, Joe Citizen was supposed to pay a penalty for their greed.