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JohnnyLaw21

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  • Bank of America P/B Approaching Credit Crisis Lows [View article]
    On the way to restructuring or bankruptcy.. I would say by January 2012 4 years after they anounced the aquisition of Countrywide.

    Here is the Balance Sheet on Market Capitalization Litigation expected loss from the News:

    Settlement with BKNY and Other - 8.5 billion not approved Expect to see a settlement around 15-20 Billion lets estimate 10 just to be Safe.

    Class Action Suits Cannot tell you how but I see them come in Everyday at Marsh lets say 40-50 cases Qui Tam and Others
    Overtime, Borrowers, Real Estate Brokers, Individuals, lets conservatively say the cost to defend and settle 10 Billion

    In the Last Month the Market Capitalization has gone from
    97 Billion to 63 Billion Thats about a 30 Billion dollar loss in assets.

    Freddie and Fannie are expected to cost BAC another 20 billion in
    mortgage repurchases.

    The Insurance Carriers are expected to see another 10 Billion after Litigation AIG and others. The reserving has to be in that area..

    The revenue from lending is down based on the enconomic climate
    no one can get loans and if they can they are paying a fantastic rate that cannot be generating high profits. Credit cards are not being used - medium income is down amoung the employed.

    Hence, a 70 Billion dollar loss will not be so easily recouped by layoffs and asset sell offs.. My prediction the value of the BAC will drop as the assets are sold off pushing towards 2008 prices causing a break up of the Country's largest Bank - the Mortgage book will be sold off at a discount again flooding the housing market. Merril may go as an IPO or get sold to another brokerage at a profit what did Ken Lewis pay for Merril 50 Billion It was a steal and now Brian will have to sell it for 75. I am Bullish on restructuring. But Bearish on BAC .. I sold all my stock in April I would get back in at $3.00 if they anounced chapter 11 lets hope it stops there.

    This is what happens when you try to beat Wallstreet from North Carolina
    Aug 23, 2011. 02:35 PM | 1 Like Like |Link to Comment
  • Bank of America P/B Approaching Credit Crisis Lows [View article]
    I see a Bankruptcy or re structuring you cannot lose 10 Billion Dollars in Market Capitalization. B of A is facing Multiple Class Action Suits Expected to settle in the 10-20 Billion Dollar Range and Investor Settlements in the 10 Billion Dollar Range. Mortgage Buybacks from Freddic and Fannie in the 20 Billion Dollar Range. Lending on mortgages at 3-5 % or not lending at all AIG and the Others are Still coming lets not forget the Attorney Generals in every State that Suppose to be another 20 Billion. That's loses of 70-100 Billion Dollars and I dont see credit card usage and deposits increasing in gthe current economic climate.
    Aug 23, 2011. 01:41 PM | 1 Like Like |Link to Comment
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