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As Bank of America soared Thursday on chatter of a mass-refinancing plan, mortgage REITs slid on...

As Bank of America soared Thursday on chatter of a mass-refinancing plan, mortgage REITs slid on worries of prepayments slashing returns on their holdings of MBS. The trend was reversed Friday after an administration official denied the rumors, but mREIT investors remain wary as NY Fed chief Dudley suggests intervention to reduce obstacles to refinancing. For now, many continue to offer double-digit dividends.
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Comments (17)
  • richardx
    , contributor
    Comments (122) | Send Message
    It is a political thing and is NOT dead yet according to reports from New York financial gurus. Obama will push for it.
    7 Jan 2012, 01:37 PM Reply Like
  • tigersam
    , contributor
    Comments (1711) | Send Message
    Bank of America did not soared. It tanked big time last year and it recovered little. When it goes from $80 to $100 per share it call soaring.
    7 Jan 2012, 01:56 PM Reply Like
  • Michael Kudrna
    , contributor
    Comments (238) | Send Message
    The WH denial sounds like a non-denial denial
    7 Jan 2012, 02:26 PM Reply Like
  • Paul Price
    , contributor
    Comments (1516) | Send Message
    Comrade Obama will be more than willing to spend other people's money for his own reelection.


    Everything he does (without consulting congress) is of this same vein.
    7 Jan 2012, 03:09 PM Reply Like
  • Papaswamp
    , contributor
    Comments (2216) | Send Message
    ..another bailout…shocker.
    7 Jan 2012, 04:06 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9718) | Send Message
    As I've written many times before, if you think that Obama or Congress will do ANYTHING to hurt BAC in an election year then you are NUTS.


    There is NOTHING they won't do to stop a repeat of autumn 2008 (and the election that followed).


    Mark my words:


    C and BAC and AIG are the safest stocks of 2012


    7 Jan 2012, 04:18 PM Reply Like
  • nobby73
    , contributor
    Comments (1177) | Send Message
    on the other hand, given how many are angry with the banks, it would be political suicide to bend the law too far....
    7 Jan 2012, 05:52 PM Reply Like
  • MexCom
    , contributor
    Comments (3058) | Send Message
    I wouldn't call it safe. Over $6 for BAC now is too speculative. It could re-test $5. A safer bet is to play the warrants. Going bust is a possibility along with the whole economy after the election. So on the down side, a loss of $.45/share on the B warrants needs to be compared to over $6 now on the common.
    8 Jan 2012, 07:31 AM Reply Like
  • MexCom
    , contributor
    Comments (3058) | Send Message
    The banks are not getting any more direct assistance - they don't need any. They are now getting hit with increased reserve requirements. The rumor is to bail out the Federal backed mortgages. This is to counter the abuses from Countrywide and similar companies in the market that caused the mortgage fiasco.


    WE need to get beyond finger pointing and continue to find ways to mend the economy. If your neighbor's house is on fire, help him put it out else have it spread to your home.
    8 Jan 2012, 07:38 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (9718) | Send Message
    When you compare BAC's assets vs. liabilities in 2012 it is hard to see sub $5 in the common as anything but the bargain of the century.


    And considering the "Fannie Mae-style" back up the company has with the Federal Government...I don't know how you lose.


    Even the Greek and Italian financial institutions are still alive and they are FAR worse off than BAC.


    Government back-ups do matter...
    8 Jan 2012, 11:44 AM Reply Like
  • Ohrama
    , contributor
    Comments (532) | Send Message
    It is unfortunate that we cannot make a decision on investing based on fundamentals. This country has become another third world country or a banana republic (give loans and write it off to buy votes). But we all know where this will all end.
    7 Jan 2012, 04:28 PM Reply Like
  • joe kelly
    , contributor
    Comments (1799) | Send Message
    Your comment, while not true yet, is prophetic Ohrama. I wish the lefty in me had something to refute it.


    C and AIG are safe. BAC is toast. They will be the sacrificial lamb.
    7 Jan 2012, 05:44 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9718) | Send Message
    BAC has a tentacle in 8 out of every 10 American homes through mortgages, checking accounts, savings accounts, IRAs, other types of loans and stock and bond portfolios.


    They go down and most Americans (voters) are hurt at least a little.


    Pain = "Vote the bums OUT!"




    How many people did you personally know have a financial relationship with Lehman Bros?


    Now think of the people you know who are somehow connected to B of A.
    7 Jan 2012, 06:43 PM Reply Like
  • SlingWing9
    , contributor
    Comments (508) | Send Message
    You're not a liberal. This is a liberal courtesy via youtube:
    7 Jan 2012, 05:46 PM Reply Like
  • bob adamson
    , contributor
    Comments (4559) | Send Message
    The January 11th Globe and Mail had the following interesting survey of US and Canadian REIT prospects.

    11 Jan 2012, 08:04 PM Reply Like
  • richardx
    , contributor
    Comments (122) | Send Message
    Thanks for the Info.
    12 Jan 2012, 09:44 AM Reply Like
  • urgetech13
    , contributor
    Comment (1) | Send Message
    The site was informative and contain useful content for the visitors. It got good posts as well. I will bookmark this site for future viewing. Thanks for sharing.
    1 Mar 2012, 03:18 AM Reply Like
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