BlueSky&Sunshine

Time To Start Buying Some Dogs?

I agree with BlueDog's opinion of BAC above. BAC didn't get into subprime or structured finance to anywhere near the degree that other big banks did. It's investment bank division never amounted to much. For the most part BAC has always been a plain vanilla CB catering to the middle class in a relatively conservative way. They've weathered the crisis well so far. They've already raised some additional capital, taken some large write-off's, and a vast abundance of bad news is priced in. And NO ONE will touch this thing right now - you'd think it was radioactive. Yes, the impact of CFC is unknown. But BAC has had months to perform due diligence. I suspect that CFC has spent the last several months refinancing every problem mortgage they could into mortgages either FHA insurable or eligible for purchase by GSE's - they've socialized many of their problems. I have a long position (as of 6/27) and expect at least 20% cap appreciation in the next year.