Grenville

I appreciate your decisiveness and enjoy reading your thoughts. Very helpful. You acknowledge your thesis was wrong and act accordingly.

JEast, do you mean the largest investment this year or ever? Or is your comment in reference to them investing that much this year given their current macro outlook?

I second that. Thanks for your summary! Glad to hear that all the weeks events went well. I'm glad you made it through all the events with flu. It's great having three days of packed events. I missed out this year.

nice interview, nice color. I like his comment about how it's not about volume.

Very nice! Enjoyed the read and analysis. I'm glad he decided to write a post with his thoughts. Thanks AZ Value!

Interesting! Hopefully all that information will lead to real changes at the exchanges or a push by customers to places like IEX.

That is funny. Looking forward to reading the book.

Sad to see another member of the old guard depart.

This is hilarious. It's in regard to the interview with Brad Katsuyama from Tuesday. BATS Forced to Correct Statements by President O’Brien on How Its Exchanges Work http://blogs.wsj.com/moneybeat/2014/04/03/bats-forced-to-correct-statements-by-president-obrien-on-how-its-exchanges-work/

Proxy is out. Thought this was interesting, they show Ian Cumming's ownership. 13,451,242 3.7% http://www.sec.gov/Archives/edgar/data/96223/000093041314001565/c77050_def14a.htm

That's assuming they haven't already exhausted the 1.8bln up to today. It's a new 4bln on top of whatever they've bought this year through today.

I worry BAC original capital plan got rejected based on the Fed's results from last week. My guess (hope I'm wrong) is they had to resubmit their plan and reduce the capital return or shift it more to buybacks versus dividends. Another result is that BAC was able to convince the Fed that their results were off last week and they can continue with their originally submitted capital plan.

It's free now for me.

+1

"Leucadia Invests in Harley-Davidson Leasing Company" http://www.digitaljournal.com/pr/1810621

Federal Reserve issued revised stress test results http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20140321a1.pdf BAC is now 5.9% instead of 6.0% It's funny how a complicated model determines something so important as capital return.

Here are BAC's supervisory results. It's posted on it's IR website: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NTM3MjMyfENoaWxkSUQ9MjI1ODcwfFR5cGU9MQ==&t=1 Here is a comparison of BAC's supervisory results from 2013 & 2014 2014 Q3 2013 Tier 1 common Ratio: 11.1% Supervisory severe adverse Tier 1 common ratio minimum: 8.6% % change: -2.5% 2013 Q3 2012 Tier 1 common Ratio: 11.4% Supervisory severe adverse Tier 1 common ratio minimum: 7.7% % change: -3.7%

I guess if I take the difference of 0.4% in terms of the delta change in the tier 1 common ratio's in the severe adverse scenario times the projected RWA of 1,319.5 it's about 5.3bln. So it's not too off. I'm a bit disappointed the minimum came in so low. The severe adverse scenario must be much worse than 2013's test. EDIT: I just read the executive summary from the Federal Reserve stress test results and it all makes much more sense as to what's going on with the numbers.

Something doesn't make sense to me when I compare 2013 to 2014 results. 2014 Net Income under severe adverse scenario: -49.1 Actual Q3 2013 Tier 1 common ratio: 11.1% Projected minimum Tier 1 common ratio: 6.0% Change in Tier 1 common ratio: -5.1% Projected risk weighted assets: 1,319.5 Calculated change in Tier 1 common capital: -5.1%*1,319.5= -67 2013 Net Income under severe adverse scenario: -51.8 Actual Q3 2012 Tier 1 common ratio: 11.4% Projected minimum Tier 1 common ratio: 6.8% Change in Tier 1 common ratio: -4.6% Projected risk weighted assets: ? (use Q3 2012 RWA of 1,195.7) Calculated change in Tier 1 common capital: -4.6%*1,195.7= -55 Not sure what I'm missing, but the drop in the tier 1 common ratio seems a bit too high given the loss numbers given. The loss is in the same ball park across the two years and the RWA has gone up in 2014 over 2013.

I think he's referring to the PTPP # of 31.4 on page 38/162. That number is through Q42015. It includes: "1 Pre-provision net revenue includes losses from operational-risk events, mortgage repurchase expenses, and other real estate owned (OREO) costs." As a comparison WFC is 50.7

2014 stress test results out: http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20140320a1.pdf

Fiat announces pricing of 1bln in notes due 2021 at 4.75% Hopefully this lowers the probability of a convertible debt offering!

"Upon acquisition of the Preferred Interest, together with the 18.6 million shares of HGI common stock acquired in September 2013 and previous purchases, we will beneficially own (including as a result of our right to sell the HGI Shares into which the Preferred Interest is exchangeable) 41.6 million common shares of HGI representing approximately 28.6% of HGI’s currently outstanding common stock and 20.1% of HGI’s common stock assuming the conversion of all of HGI’s outstanding Series A and Series A-2 Participating Preferred Stock. Upon the exchange of the Preferred Interest into the HGI Shares, our total net purchase price of the HGI Shares and the 18.6 million shares of HGI common stock purchased in September 2013 will be $406.5 million, or $9.77 per share." from sec filing regarding the transaction: http://www.sec.gov/Archives/edgar/data/96223/000090951814000126/mm03-1714_8k.htm

+1 nice! Thanks for posting.

I haven't seen this one. Thanks for posting.