Mindstorms2002

Why Bank of America Paid Back the Money

I'm not terribly sophisticated in the intricate workings of commercial banks and large financial institutions, but as a current shareholder of BAC, I am pleased that they repaid TARP. Having the Federal Government as a fellow (and belligerent) shareholder has been unnerving at best... I do have one question, though. If paying back the TARP was such a bad idea, why did JPM and GS rush to repay? Is the case with BAC strictly a problem of dilution? And, in the long run, is it not better to take the dilution now rather than remaining crippled or partially crippled into the future?

Why Bank of America Paid Back the Money

I agree with you ACCOUNTANT; however, I do not believe that this was "an incredibly stupid article." These articles are obviously intended to do exactly what this one has. It has stimulated a great deal of argument and debate in an effort to educate everyone who participates on many of the issues that ultimately affect us all - regardless of the topic at hand. I know that I have benefited greatly by the general discourse found on this site. Even the "stupid" ones. ;-)

BofA Left to Clean Up Countrywide's Mess

In addition to the mortgage servicing business, there are other assets within CFC that can be readily sold (i.e. P&C business) for considerable dollars. As for the FHA Housing Stabilization and Homeownership Retention Act of 2008, Congress will easily override any veto from Bush. Finally, and optimistically, the early $2B could be considered call premium for time to do due diligence and make a decision.

Expect BofA's Dividend To Be Cut

Mr. Townsend,

BAC has said that there are viable capital raising alternatives to reducing the dividend. Do you have a feel for what they are and if they are in fact "viable." Also, do you have an opinion on the how the stock price will act over the next 12 to 18 months if the dividend is reduced 40% and other capital raising strategies are implimented (i.e. partial liquidation of CCB, etc.).

Thanks.

$125 Oil Not Sustainable for the Time Being

Thank you, wsigler. Couldn't have said it any better myself.