Heading into the last trading day of 2011, BofA (BAC) looks set to be the DJIA's biggest loser...


Heading into the last trading day of 2011, BofA (BAC) looks set to be the DJIA's biggest loser of the year. Down 59% YTD, the bank has been beset by mortgage losses, new regulations, lack of confidence in management and the broader economic slowdown. In comparison, the DJIA is +6.1% YTD while the KBW Bank Index is -24%.
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Comments (11)
  • bbro
    , contributor
    Comments (10936) | Send Message
     
    For investors it has been a huge loser and a source of much glee to the
    financial press....but...
    Tangible common equity 1q 2009 70 bill
    3q 2011 134 bill

     

    Loans. 1q 2009. 977 bill
    3q 2011. 932 bill

     

    Short term debt. 1q. 2009. 186 bill
    3q 2011. 34 bill

     

    BAC does not need to issue long term debt for at least 4 years....175 billion long term debt comes due over the next 4 years
    with significantly higher coupons..5, 6, 7%...it owns just in its securities port. 220 bill in treasury and agency securities at an average yield of around 3%...
    obviously the long term debt is going to shrink significantly...
    30 Dec 2011, 03:03 AM Reply Like
  • pokalolo
    , contributor
    Comments (597) | Send Message
     
    BAC is still in huge danger ! So far the States haven't started the wave of law suits and the Attn. Generals do not want class action status as they all want to be Governors. They all want there own glory and BAC also has over a trillion hidden off balance sheet of CDS swaps on the OTC exchange. This stock should file bankruptcy an start fresh and Brian could stop this horrific scam.

     

    Remember, Greece is gone and in a few months Sarkosy might not get elected for another term and the fragile German French agreement may crumble. Then French banks will see runs an US banks may get those CDS contracts put to them. Even Ben and his printing couldn't put Humpty as US banks back together again !

     

    Don't worry, Buffet will be high up in the pecking order an Obama will cover his butt...............
    30 Dec 2011, 04:49 AM Reply Like
  • bbro
    , contributor
    Comments (10936) | Send Message
     
    "BAC also has over a trillion hidden off balance sheet of CDS swaps on the OTC exchang"

     

    Source???
    30 Dec 2011, 04:53 AM Reply Like
  • pokalolo
    , contributor
    Comments (597) | Send Message
     
    Zerohedge ! All the big global banks have them and golfitobob posted those results a year back....6 months before Zero........... pok

     

    BBRO, please don't slam him as he documented his work and this re-hypothification was covered on Bloomberg an CNBC. It is real ! MF Global showed this too.
    30 Dec 2011, 04:55 AM Reply Like
  • bbro
    , contributor
    Comments (10936) | Send Message
     
    ZH...like he hasn't printed misinformation...I love it when the financial
    press quotes one side of a trade to support their preconcieved agenda....
    30 Dec 2011, 05:01 AM Reply Like
  • pokalolo
    , contributor
    Comments (597) | Send Message
     
    The printing of misinformation is your area ! This year the averages are basically flat and a 10 year chart shows this too. The IMF is on t/v now telling the real strory,but, a perma bull like you will just pretend all is always well.
    30 Dec 2011, 05:04 AM Reply Like
  • bbro
    , contributor
    Comments (10936) | Send Message
     
    And this is what makes markets...may your shorts be profitable
    30 Dec 2011, 05:11 AM Reply Like
  • pokalolo
    , contributor
    Comments (597) | Send Message
     
    BBRO, I am not short. I have a few longs and prefer bonds.
    I am long FAX, FAM for many years and i do have a few speculative symbols . You've seen my comments.

     

    If Brazil 10 year bonds yield over 12% and the interest compounds in a simple bank account over 6% why gamble in stocks. You see what the Fed is doing and know the weaker dollar is their game plan So the Real will gain as the Yuan ( which I have accounts an bonds in ) will slowly gain against the dollar ,so, I can earn great rates without stock exposure.

     

    How many stock holders does BAC have and how many have held all the way down ? And, take C for example. How many own it before the reverse split or even since Sandy and his daughter were there........ They will NEVER break even.....

     

    If BAC bit the bullet and reorganized they would emerge anew and that is the American way ! No ? Ala GM......... Happy New Year !

     

    PS. Remember, if the upcoming lawsuits drop BAC under 5 for more than 48 hours all major funds must sell it as under 5 triggers it's margin abilty an other requirments,so, it might gap down into the 3s........Very risky !
    30 Dec 2011, 05:20 AM Reply Like
  • bbro
    , contributor
    Comments (10936) | Send Message
     
    Yes the stock is a stinker but the company is still quite viable...remember JPM trades at its tangible common equity value so
    banks in general are heavily punished right now
    30 Dec 2011, 06:00 AM Reply Like
  • pokalolo
    , contributor
    Comments (597) | Send Message
     
    I own 1 bank ! I bought recently at 36.. HSBC
    I did because they left the USA and they will be in great shape as the world recovers.

     

    And, JPM is the best of the big US banks,but, if I bought US banks it would be the smaller regionals with out mortgage exposure........Enjoy 2012

     

    My 2012 guide in banks ! When JPM hits 35 it will signal the US market is ready to go higher !
    30 Dec 2011, 07:31 AM Reply Like
  • bbro
    , contributor
    Comments (10936) | Send Message
     
    Very good point...
    30 Dec 2011, 09:10 AM Reply Like
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