Bank of America Continues to Suck

Okay. So when I spoke of how much suckitude Bank of America had, I perhaps somehow managed to misunderestimate just how much they had.

Understandable, really. Apparently even they misunderestimated:

Dec. 10 (Bloomberg) -- Bank of America Corp. has frozen its Columbia Strategic Cash Portfolio fund, which is marketed to institutional investors and has about $12 billion in assets, financial news network CNBC reported, citing unidentified people in money management.

Wow. So maybe one reason BoA sucks so mightily is because they’re actually strapped and therefore have to try to skim off their customers where and when they can.

Huh. That’s…disturbing, considering they’re one of the two largest banks in the United State of America.

H/T: Carefully Selected Garbage

Comments

[J]

Um . . . this isn't simply misunderestimating, Scott, this =misunderestimating-$12 billion

You see, they're not actually skimming off their regular customers this time, they're skimming off other banks (and investment funds). So folks with non-FDIC insured investments or deposits in places that would seemingly have nothing to do with BofA are going to take in in the face. Well diversified mutual funds might be fine in the long run, but I have no idea about other types of subprime debt buyers. Because it was a cash fund, I'm thinking a lot of hedge funds are going to hurt. This may or may not have a trickle down effect. Hedge funds did some funny, but not exactly humorous, things to us in the 80's.

It looks like they are trying to stem liquidity of this particular fund. Does that mean that they don't trust their investors or are they anticipating something?

[fish]

They are anticipating massive withdrawals from investors and being left holding a bag of s**t.

[J]

Just out of curiosity, do you have anything to do with bankofamericasux.com? Actually, there are quite a few websites in this vein. The only bank I tried but could not find was ING. WaMu even has two websites declaring that it sucks.