BofA Resists

Posted on May 6, 2009 by jck

PMT: 10.24 DOWN 2%

BofA Faces $34 Billion Gap

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4 Responses to BofA Resists

  1. s says:
    May 6, 2009 at 6:01 pm

    JCK,

    Agree with last point this is all about pushing out horizons. Does ntohing for the long term prospects and earnings power of these companies. NIMS are a record wides and that will eventully become unsustianble. What the sheeple don;t realize is that 3-5% over time in a nromalized rate environement trashes equity and makes it a parking lot. Gov’t cant let that happen sothe pump is on. Why they are so concerned about the equity market which is akin to an indian reservation casino is a headscratcher, especially when the about of debt that has to come to makret is simply not digestable. perhaps the equity market is merely acting to reflect the coming printing. More likely it is being pressed up. Total House of Cards.

  2. jck says:
    May 6, 2009 at 5:41 pm

    And btw, the exercise changes absolutely nothing, they are OK for Tier1, but the administration capriciously changed the rules to TCE as a benchmark. None of the banks converting TARP will have an extra cent in “real” capital, just reshuffling book entries.

  3. jck says:
    May 6, 2009 at 5:37 pm

    Non-event.
    Worst case: all TARP money converts to equity, this is “IN” the price, if capital shortfall < TARP money, bullish.

  4. Marcus says:
    May 6, 2009 at 5:27 pm

    What do you make of the stress tests?