Re: Bank of America

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Michael, Bank of America forces us to ask ourselves: “How many times and for how long can an ostensibly private organization behave like an adjunct of the state before it ceases to be private?” Bank of America is a corrupt, bloated, and poorly run organization. They’d be out of business now if not for their easy access to the US Treasury and for their untrammeled access to favors from the Fed and from people like Geithner. But when you have access to the treasury purse, who needs competent management? Following the acquisition of Countrywide, which was itself likely the result of some corrupt agreement with the feds, Bank of America became the largest holder of worthless mortgage loans. Now BofA drives public policy in the mortgage markets with its army of lobbyists, which is partly why we have QE2 and why we’ll probably get QE3 and QE4, so that the money will keep flowing and so that BofA can postpone for just a little longer the day that it will have to admit that it is insolvent. Each new postponement, of course, brings a new payday of bonuses and junkets for BofA executives.

11:32 am on December 18, 2010