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While it's questionable how much capital the Fed will allow Bank of America (BAC) to return to...

While it's questionable how much capital the Fed will allow Bank of America (BAC) to return to shareholders, the bank doesn't need D.C.'s permission to pick off some low-hanging fruit - redeeming Warren Buffett's $5B in preferred stock. The shares do not qualify as capital under new Basel rules, but BofA pays 6% on them, nearly double the average of its long-term debt.
Comments (4)
  • Just another WSJ advertisement.
    2 Jan 2013, 11:03 AM Reply Like
  • And charges its customers 18 percent. Why not return the glorious benefits the bank received to its laboring customers. BAC is garnering a ton of money and certainly enough money to pay back Buffett with the interest revenue it receives each and everyday from the bank's card holders.
    3 Jan 2013, 12:52 PM Reply Like
  • Well hell, if it so great why don't you buy instead of bitching about it. Aren't you an investor. BAC was by far my best stock for 2012.
    3 Jan 2013, 03:57 PM Reply Like
  • I don't think that BAC is going to call in WB's preferred stock. I don't know if it is even callable.
    3 Jan 2013, 03:59 PM Reply Like
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