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Thread: Bank of America spends $10 million of bailout money on Superbowl party

  1. #1
    Elite Member WhoAmI's Avatar
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    Default Bank of America spends $10 million of bailout money on Superbowl party

    Bailed Out Bank of America Sponsors Super Bowl Fun Fest
    By BRIAN ROSS, MEGAN CHUCHMACH, ASA ESLOCKER and JOE RHEE
    February 2, 2009

    Despite a near collapse that required $45 billion in federal taxpayer bailout funds, Bank of America sponsored a five day carnival-like affair just outside the Super Bowl stadium this past week as President Obama decried wasteful spending on Wall St.
    Brian Ross investigates the bankers who sponsored Super Bowl festivities.

    The event known as the NFL Experience was 850,000 square feet of sports games and interactive entertainment attractions for football fans and was blanketed in Bank of America logos and marketing calls to sign up for football-themed banking products.

    The bank staunchly defended its sponsorship, saying it was a "business proposition" and part of its "growth strategy."

    Critics blasted the spending as a serious abuse of taxpayer money.
    ABC News: Bailed Out Bank of America Sponsors Super Bowl Fun Fest

  2. #2
    Elite Member Beeyotch's Avatar
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    Wow. Fuck Bank of America. Fuck 'em hard. That's just unconscionable and shameless.

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    Elite Member MrsMarsters's Avatar
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    And how was this allowed to happen?

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    Elite Member celeb_2006's Avatar
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    B of A knows they can get away with it, like all these other scumbags that are using bailout money to fund their own whims and fancies.

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    Elite Member kingcap72's Avatar
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    And this is why there needs to be heavy strings and restrictions before another company or bank gets a cent of bailout cash.

    Personally, I think any bank or company that squandered that cash on parties, bonuses, etc should be required to pay that cash back before they get another dime of taxpayer money.

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    Elite Member greysfang's Avatar
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    This story is very slanted. BofA did not receive bailout money directly, Merrilly Lynch did, then BofA bought them.
    FUCK YOU AND GIVE ME MY GODDAMN VENTI TWO PUMP LIGHT WHIP MOCHA YOU COCKSUCKING WHORE BEFORE I PUNCH YOU IN THE MOUTH. I just get unpleasant in my car. - Deej

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    Elite Member WhoAmI's Avatar
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    Ok, but they should then have cancelled the excessive partying.

  8. #8
    Elite Member greysfang's Avatar
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    Why? Bofa has never been in financial trouble.
    FUCK YOU AND GIVE ME MY GODDAMN VENTI TWO PUMP LIGHT WHIP MOCHA YOU COCKSUCKING WHORE BEFORE I PUNCH YOU IN THE MOUTH. I just get unpleasant in my car. - Deej

    http://www.gossiprocks.com/forum/signaturepics/sigpic4098_9.gif Healthy is merely the slowest possible rate at which one can die.

  9. #9
    Elite Member WhoAmI's Avatar
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    BofA received $45 billion after they acquired Merrill Lynch, $20 billion of which they got about 2 1/2 weeks ago.

    Treasury, Bank of America agree on bailout
    Fri Jan 16, 5:31 pm ET
    WASHINGTON – The government has extended a new multibillion-dollar lifeline to one of the country's biggest banks as officials continue to struggle with a serious crisis in the financial system.

    After a marathon negotiating session, the Bush administration agreed early Friday to provide Bank of America with an additional $20 billion in support from the government's $700 billion financial rescue fund. Bank of America agreed to pay a dividend on the cash injection and will accept more restrictions on executive pay.

    The administration, the Federal Reserve and the Federal Deposit Insurance Corp. also agreed to participate in a program to provide guarantees against losses on approximately $118 billion in various types of loans and securities backed by residential and commercial real estate loans.

    The bulk of these holdings were assumed by Bank of America when it acquired Merrill Lynch & Co. Inc. in a deal that closed earlier this year.

    Bank of America Corp. already had been granted $25 billion from the bailout fund that Congress passed on Oct. 3, but found it needed more as it sought to cope with rising losses related to its acquisition of Merrill Lynch.

    In a joint statement, the Treasury, Fed and FDIC pledged that "the U.S. government will continue to use all of our resources to preserve the strength of our banking institutions and promote the process of repair and recovery and to manage risks."

    With the latest commitment, the Bush administration has gone beyond the first $350 billion of the rescue program. But officials told reporters on a conference call early Friday morning that sufficient resources were available because a portion of the first $350 billion will not be spent until coming weeks.

    The $20 billion which will be used to inject capital into Bank of America was to be transferred on Friday, the officials said.

    Bank of America agreed to pay the government an 8 percent dividend on the $20 billion capital injection. It also agreed to comply with enhanced restrictions on executive pay and benefits and implement an expanded program to modify mortgages in an effort to avoid rising foreclosures. The company also agreed to reduce its dividend to a penny per share for three years.

    Under the program to cap losses on $118 billion in troubled assets, Bank of America will absorb the first $10 billion of losses on the assets and the government will cover 90 percent of any additional losses. As compensation for the new support, the government will get $24 billion in shares of preferred stock which will pay an annual interest rate of 8 percent.

    Only hours after the announcement of the government lifeline, Bank of America on Friday reported a fourth-quarter loss of $2.39 billion, or 48 cents per share, down sharply from a profit of $215 million, or 5 cents per share, a year ago.

    The government's agreement with Bank of America mentions "enhanced executive compensation restrictions" but doesn't elaborate. But Rep. Barney Frank, D-Mass., who heads the House Financial Services Committee, last week issued an outline of his proposal to attach strings to spending the rest of the bailout money. That plan places strict limits on executive compensation — both for companies receiving new federal money and those that already have — including a ban on any bonuses for the 25 highest paid executives.

    Lawrence H. Summers, a top aide to President-elect Barack Obama, sent a letter to House and Senate leaders Thursday detailing plans for the remaining $350 billion in bailout funds, including a requirement that "executive compensation above a specified threshold amount be paid in restricted stock or similar form that cannot be liquidated or sold until the government has been repaid."

    Treasury Secretary Henry Paulson, who will be leaving office Tuesday with the change of administrations, wrapped up a piece of unfinished business on Friday when the Treasury, Fed and FDIC announced they had finalized the terms of the agreement reached with Citigroup on Nov. 23. That agreement provides guarantees against losses on an asset pool of about $301 billion in loans and securities backed by residential and commercial real estate.

    There is widespread unhappiness in Congress over how the Bush administration has implemented the first phase of the $700 billion program, the largest government bailout in history. But Paulson told reporters on Friday he believed the administration would be proven right in its actions.

    "History will look and say maybe around the edges we might have done things differently, but the big decisions we made have been the right ones and I think they will stand the test of time," he said.

    The Senate on Thursday turned aside an effort to block release of the second $350 billion after the incoming Obama administration pledged to utilize more of the second half of the fund to help stem mortgage foreclosures and bolster credit for consumers and small businesses.

    However, Federal Reserve Chairman Ben Bernanke said in a speech earlier this week that he would like to see much of the remaining part of the rescue program devoted to bolstering the banking system, where continuing weakness is raising concerns among policymakers.

    Bernanke, Paulson and other government officials have struggled to restore confidence in the financial system, which has been rocked by billions of dollars in losses on mortgages and other types of loans.

    The administration has focused on supplying billions of dollars to banks in the form of government purchases of bank stock in the hopes that the banks will use the fresh infusion of capital to resume more normal lending.

    But faced with a new wave of loan losses as the economy sags into a deepening recession, the bailout program has met with mixed results so far.

    In the joint statement, the government agencies said the new support for Bank of America was designed "to strengthen the financial system and protect U.S. taxpayers and the U.S. economy."

    Bank of America reached the agreement to acquire investment bank Merrill Lynch back in September, a period when Wall Street was being rocked by its biggest upheavals in decades, including the biggest bankruptcy filing in U.S. history, the collapse of investment bank Lehman Brothers.

    Even with the earlier $25 billion in government assistance, Bank of America's stock has been pummeled.

    Stock in the Charlotte, N.C.-based bank fell 13.7 percent Friday to $7.18 per share, down nearly 50 percent this year to the lowest level in nearly 18 years.

    Fears about the stability of the financial industry had gripped Wall Street in recent days, sending stocks plunging. Investors are worried about another round of losses from banks, which had been especially hard hit by the worst financial crisis since the 1930s.

    In the Citigroup rescue in November, the bank received a fresh $20 billion capital infusion from Treasury's bailout fund — after earlier receiving $25 billion — as well as government backing of billions of dollars in risky assets held by the bank.
    Treasury, Bank of America agree on bailout - Yahoo! News

  10. #10
    Elite Member Mr. Authority's Avatar
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    This shit goes on and yet the fucking repugs want to bitch about "useless spending" in the stimulus package. Pathetic!

    All the B of A execs should be lined up and shot. They want to spend money on a fucking useless party then they can pay with their life. (I don't care if that sounds maniacal that's the truth.)

  11. #11
    Elite Member Brookie's Avatar
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    ...and they invited ALLLLLLL their loyal customers - right?

    Didn't think so.

  12. #12
    Gold Member powerorchid's Avatar
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    every bank in the world should want to be seen to be saving not spending right now. It's a bit like that queen who said "let them eat grass" These bankers are so removed from reality....

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    Elite Member kingcap72's Avatar
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    Bank of America is trying to use the excuse that it was a business decison so that they can grow their customer base. Anybody buying that? Nah, didn't think so.

  14. #14
    Elite Member WhoAmI's Avatar
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    "Football-themed banking products"? WTF? They're hoping that the poor peasantry who can afford Super Bowl tickets are going to get checks with football logos on them?

  15. #15
    Elite Member Mivvi21's Avatar
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    Ridiculous. They should be forced to pay back every cent of the bailout money they got. This sort of irresponsible spending is what led them to the edge of bankruptcy in the first place. These idiots never learn.

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