Bank Of America Could Cut 30,000

The banks ask for a taxpayer bailout and our corrupt government grants it. The banks promised they will help the people (taxpayers) by doing loan modifications and start lending more money out. Instead, they lie about doing the mods and foreclose on people who are working with them and instead of loaning the borrowed money at 0% back out, they buy US treasuries and collect `1-2% risk free.

Now that our same government has decided to crack down on their fraudulent practices, one of the major banks announce they will cut more jobs. This is after they suckered in Warren Buffett into a $5 billion private investment. Seriously, if the bank is simply insolvent, the FDIC needs to step in and liquidate this bank. The odd part is the bank executives are all still getting paid million of dollar compensations even though the company is laying off troops of employees.

MarketWatch:
If it is true, it would be another sign of desperation. The Charlotte Observer reports that Bank of America (NYSE: BAC) could lay-off 30,000 people over several years.

The bank has come under new pressure as the government announced a suit against 17 financial firms which it claims misrepresented the risk of mortgage-back securities they sold to Fannie Mae and Freddie Mac. The total losses from these was $200 billion. The possibility that the government can recoup of all that is unknown.

Bank of America (NYSE: BAC) has been rumored to need over $100 billion in new capital. There have also been rumors that the firm could be taken over by JP Morgan (NYSE: JPM) or another large American bank. B of A has attacked these as false, but its share price has done little to allay fears. The stock fell to $6.01 three weeks ago. Warren Buffett invested $5 billion in the bank which cause share to rally. Subsequent bad news pushed shares, which had recovered to $8.39, back to $7.25. The stock’s 52-week high is $15.31.

Bank of America can continue to deny it will need to raise large sums of money, an act which would nearly wipe out common shareholders. The firm’s stock says many investors have bet otherwise