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Fair Value of Bank of America: A Flaw in Paulson's Calculation?

You back up the truck and good luck to you and the power house. How did the power house get into a mess in the first place?


On Nov 25 02:07 PM Only the Facts wrote:

> Hello? BACK UP THE TRUCK!! Has anyone been paying attention to this
> power house???? Bank of America should be able to repay TARP immediately:
> In the second quarter, it more than met the stress test mandates
> by raising $40 billion, which was $6 billion more than the government
> required. Also, in recent months, it issued $10 billion in debt without
> government backing, and it has stopped borrowing from two Federal
> Reserve programs. The bank has been raising its liquidity significantly,
> which should help it repay TARP when the government gives the go-ahead.
> At the end of September, Bank of America held $152 billion in cash
> and cash equivalents, compared to just $39 billion in the same period
> the year before.
>
> Sanford C. Bernstein & Co., estimates that without the TARP money,
> Bank of America's Tier 1 ratio - a key measure of capital levels
> - would be 8.9 percent. That is well above the 6 percent needed to
> be considered well-capitalized, and it's also in line with the ex-TARP
> ratios of banks that have been allowed to repay TARP, such as JPMorgan
> Chase and U.S. Bancorp.

A Tale of Two Markets: Overvalued Stocks and the Declining Dollar

What will they be buying with those dollars and what sucker is going to acept them for what kind of assets?


On Nov 21 11:33 AM fwi wrote:

> The whole market schtick of gaming low estimates to pump stocks is
> so last year. I have always thought Wall Street was usually ahead
> of their game. I think this whole sick relationship with obama and
> DC has really taken their edge off, and that this time they will
> lose like last year, but without the taxpayer largesse. I firmly
> believe that the real leg down is coming. And it really will not
> be about anything but the exposure of the risks and leverage they
> have. True exposure last fall was avoided by the quick bailout. This
> will not happen the second time. And the catalyst to bring about
> this miracuous truth? THe world led by China and its would be friends
> will start dumping Treasuries. Not dollars, Treasuries.

A Tale of Two Markets: Overvalued Stocks and the Declining Dollar

I am with you. we need real profits not analyst's thoughts.


On Nov 21 10:31 AM Old Trader wrote:

> bbro,
>
> The other evening, Bloomberg TV had an interesting factoid to mull
> over: 80% of companies reporting beat estimates, however, profits
> were DOWN 46%, YoY, which implies that analysts erred on the downside,
> when issuing their estimates, not that things are improving by any
> great measure.

BofA's MAC Clause: As Porous as Swiss Cheese

Pigs get slaughtered..............

Dividend Aristocrats Will Continue to Outperform

Good croporate governence demands fairness to stock holders, employees, debt holders, management, and customers. These are the companies with staying power.

BofA Given Hush Money: Will Lewis Step Down?

I rarely agree with you ,but I do here.


On Apr 23 02:09 PM Cetin Hakimoglu wrote:

> The masters of the universe earned their position through meritocracy.
> Kenneth Lewis creates value with years of profitability, as opposed
> to the insolent General Motors run by the incompetent, befuddled
> Rick Wagner.

Open Letter to SEC: Wall Street's REIT Bait-and-Switch

rrrrrrrrrrrrrrr

Bank of America's Q1: Why I Don't Believe Banks' Earnings

It seems to me that mark to market unfairly punished banks since the market was totally dry. If you take your rototiller to the local farm auction and no one buys it, that dosen't make the equipment worthless. It means there was no buyer present on that particular day. Or if the auction was cancelled due to lack of interest that dosen't make it worthless either. It may make it unsalable at that time but still not worthless. The problem is deriving at a reasonable value between the two extremes that is normally arrived at by the auction method. These assets are not totally unpreforming and have value regardless of the auction results.
With that said, did anyone solve the off balance sheet predicament? Now that is really phantom accounting and folks should go to jail for that ala Enron.

Banks No Longer in Crisis Mode

With all the good businesses in this world why would anyone consider investing in a large bank at this point in time or the near future. It is obvious that the Gov't caused most of this problem and that with all the opaqe qualities of this whole scheme it would seem that wise folks would keep away. I unfortunately am an owner of (BAC) who wishes he could go back in time and correct my stupidity.

Ben Graham Had It Right

Thanks for focusing on a small segment of the book that needs to be understood and makes so much sense. Short points like this are the easier to understand and remember.

Why Is Everyone Blaming the CEOs? It's the Government's Fault

The bankers should have been questioning the mortgauge queen, not the other way around.

Why Is Everyone Blaming the CEOs? It's the Government's Fault

Artful dodger, I actually think you have to go back to the Carter administration to see where pressuring banks to give loans in areas that banks had redlined started. These places were redlined because the banks thought loans were not safe there.

Wall Street Breakfast: Must-Know News

Laura Rowley on yahoo finance coined the phrase an economy twisted by stupidity and fraud. This is the most accurate and consise discription of the world financial position that I have heard. If you replace the word economy with congress it would be just as accurate. The issue is not democrat or republician. It covers most of the players, one of the most offensive is the mortgague queen.

Investors Staying Away from Banks; Gold Attempts to Break Downtrend

Maybe the mark to market law for mortgauges and othe loans bundles should be abandoned in favor of a mark to repayment ratio. The crux of the matter in this issue is, is the money being paid back and if not how much value does the asset the loan was made for retain. Why would these bundles have any value if these factors were unknown? Perhaps these bundles should be unwrpped and each individual loan sold or at least rated by itself.

Wall Street Breakfast: Must-Know News

Know nothing, YOU MAKE SOME GOOD POINTS BUT YOUR FIRST STATEMENT IS OUT OF LINE. It leads one to believe you are the only person in the country that knows anything and have a total grasp on the entire situation. No one is that smart and all knowing. Don't blame you for being angry, the congress has failed for so many years to act responsibily and protect and defend us. To busy pointing fingers at everyone else.