This is from Denniger Submit. My thoughts are these:
1.) B of A is like a Big fish who swallowed another fish (CW), problem was…it was a poisonous puffer fish full of toxins.
2.) B of A didn’t want to realize all there losses in the same year (most likely had to do with spreading out losses and tax deferred assets Submit. Given that they wanted to take the losses in 2010, because they didn’t anticipate a return to profitability until 2012, B of A wanted to make sure that these T.D.A’s didn’t expire, thus making them have to pay heavy penalties. As a side bar, this is also why I believe that these banks are stockpiling cash reserves, to pay for these expiring T.D.A.’s. Also read about the new accounting standards regarding capital reserves and why these cannot be used any more to compute a banks capital requirements. http://mandelman.ml-implode.com/2009/12/obamas-speech-avoids-using-the-n-word/
3.) They are also garnering heavy servicing fee’s whilst doing this for the investors who backed these loans (if they weren’t owned by B of A.) Some companies accounted for as much as 12-20% of their annual profits from servicing costs which are recouped from the investor after a short sale or foreclosure.
4.) They had to revamp the system entirely to deal with the $*! storm. (see. REO Trans, Equator, Titanium Solutions, etc)
5.) Many of their seasoned negotiators (like their office in Texas) left to go work for Citi, Chase, etc… leaving them understaffed and with inept people.
6.) 2010 May be the year of BOA approvals! Remember when Countrywide and Bank of America used to be one of the good ones to work with? I anticipate a rash of activity in the 1st quarter of the year as they hustle to move out inventory.
Time will tell, mark the tape 
!!!
http://market-ticker.denninger.net/archives/1787-A-Short-Treatise-On-The-USeless-Economy.html Submit
