Monday, June 06, 2011

Do You Pay Taxes? Bank of America Owes You Big-Time

Dodd-Frank has wonderful effects on zombies like Bank of America.

The implicit government guarantee these banks enjoy is a subsidy. The "five notches of uplift from government support assumptions" that Moody's gives to Bank of America translate into real profits for Bank of America. Without a presumed bailout, Bank of America's senior debt would be rated Baa3, just barely on the right side of the "Investment Grade"/"Speculative Grade" boundary. The presumed "government support" raises the bank's debt rating to A2, which is "very low credit risk." --Tim Carney quoted at AmSpec blog

Gotta be worth at least a free toaster or something....

By the way, I TOLD you that Chris Dodd was a bank-whore.

1 comment:

Deekaman said...

I need to call BoA and tell them I've already paid off my credit card via my taxes.