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Bank of America Raises a Whole Lotta Money

Pj568,

thanks, that must indeed be the explanation. So the way I figure, BAC's "real" price according to the market gods was/ is somewhere above 11, having been clobbered too much, so having "successfully" been able to place its offering at $10 was viewed as a positive indicator. Hence the jump up. The reason the placement was at $10, at a discount over the market price, is that there must be some sort of restriction (maybe self implied if it was bought by the government or gov controlled entities) as to how long it had to hold the stock before being able to dump it back.
In other words the chance of BAC tanking, is what accounts for the discount.
Well, the market yesterday went up then down back to where it started for BAC. And XLF tanked - showing more pessimism.

Personal interest: I was long SKF but didnt have the guts to increase my position that much. Still, not complaining.