Parsad

Back up the truck was several months ago, when a handful of us were backing up the truck. Now it's stay the course on BAC and WFC, and look for other ideas for capital. Cheers!

Contrary to what many investors feared last year, banks are in very good shape, and about 80% of firms would have passed the new extreme scenarios in this year's stress test. Cheers! http://blogs.wsj.com/economics/2012/03/13/fed-releases-stress-test-results/?mod=yahoo_hs

Also according to breaking news on Bloomberg, Suntrust's capital plans failed the stress test. Moynihan is looking smarter and smarter for not asking for a return of capital. Cheers!

According to different reports, they passed. I hope they do file an amendment or something to ask if they can buy back shares in the 2nd quarter on. I don't want them to increase their dividend anyway, until they've got their Tier 1 up at 10% and they've bought back some shares below tangible book. Cheers!

According to breaking news on Bloomberg. Maybe Pandit should give some of his compensation back until they do pass! Cheers!

Morgan Stanley is reporting that the Fed has no problem with them paying a dividend. If this is true, then I can't see why BAC wouldn't be allowed to increase their dividend slightly. Cheers!

FOX is reporting that BAC passed according to sources familiar with the matter. http://www.foxbusiness.com/news/2012/03/13/jpmorgan-set-to-raise-dividend-after-fed-stress-test-bac-said-to-pass/ Cheers!

WSJ changed the title of that article. They may have been premature on that BAC comment. Cheers!

They changed the title of the WSJ article, so their comment may have been premature. Cheers!

I'm guessing today is looking pretty good for Berkie as well! Cheers! http://www.forbes.com/sites/gurufocus/2012/03/13/fairholme-fund-goes-from-bottom-99-to-top-1-of-funds/?partner=yahootix

I don't think Berkowitz is going to look dumb to many people much longer. He's got a ways to go, but I think this just the start for some of his positions. I'm sure his SHLD is looking pretty good this year as well. Again, those guys that jumped the ship near the bottom are going to regret their decision. Cheers!

Did WFC release payout information? I would bet that WFC's dividend will be a minimum of 60 cents, and I would say it would be closer to 80 cents annually. They could actually afford even more than that, but I think they may back a bunch of shares too. Cheers!

I posted a new thread, but BAC has passed as well according to the WSJ. Giggle, giggle! Cheers! http://online.wsj.com/article/SB10001424052702304537904577279720671471152.html?ru=yahoo&mod=yahoo_hs

Giggle, giggle! Cheers! http://online.wsj.com/article/SB10001424052702304537904577279720671471152.html?ru=yahoo&mod=yahoo_hs

You have double taxation on a dividend, which was already at about 2.5% annually. Whereas a share buyback is much more tax efficient if you believe your shares are undervalued, and your business will do well economically long-term. Cheers!

I can only imagine you giggling! ;D I might joint you. Cheers!

They passed the stress test with ease. Wells has shot up as well, as they will probably be in the same boat. Cheers! http://www.forbes.com/sites/steveschaefer/2012/03/13/jpmorgan-passes-feds-stress-test-dividend-up-20-15b-buyback/?partner=yahootix

Fairfax has partnered with Kennedy-Wilson on a $278M EUR commerical real estate investment vehicle. Cheers! http://www.reuters.com/finance/stocks/FFH.TO/key-developments/article/2499603

Legally, her Mom is on title, but this young girl is smart and thrifty! Cheers! http://www.cnbc.com/id/46718489

The Brick has tendered to buy back its debentures and Fairfax has agreed to sell theirs. Cheers! http://www.theglobeandmail.com/globe-investor/news-sources/?data-ipsquote-timestamp=20120312&archive=cnw&slug=C3482

Hope it works! Cheers! http://www.theglobeandmail.com/globe-investor/rim-on-offensive-to-retain-clients/article2366893/

Yes, today...that's why there is this tremendous discount. But over time, that will be more comparable. Wells is the model that everyone wants to be. If Moynihan keeps plugging away, over time he will get there. Cheers!

The meeting itself and Prem's Q&A is over by about noon. But then there is a cocktail party in the lobby for about another hour. So everything is officially done by 1pm. You can then come over to the Pickering/Green Rooms where MPIC Funds is doing their AGM! ;D Cheers!

I think BAC's return on equity will be better than 10% after 2-3 years. Why? Because much of their earnings will be driven by a recovering housing market. There is every reason to believe that once BAC gets their litigation issues out of the way, and their operating costs down to very efficient levels, they would entertain a price not much less than Wells Fargo relative to book. - Moynihan's model for BAC over the next five years is to copy the culture and customer-centric focus of Wells. - They have the deposit base and the mortgage business. - They also have a much more complete investment business than Wells. - The credit quality of their portfolio is improving every quarter. - Their operating efficiency should be on par with Wells over time. When you have a CEO who truly puts his compensation aside to do the right thing for the business, you start to develop a culture that will permeate the ranks over time. Compare Moynihan's compensation to Vikram Pandit's. Look at what Moynihan had to work with and turnaround and look what Pundit had to work with...then compare their compensation. That changes the way employees behave when the CEO does the stuff that no one else is willing to do. I'm very keen on BAC, because I'm very keen on Moynihan...he's the intangible asset in the valuation that you guys aren't including in your calculations! Cheers!

I think it is very likely they would increase the dividend in 2013, depending on how some of their settlements on litigation go. At present, and I can't see anything changing through the rest of this year, how their loan loss provisions would be off by a whole lot, nor do I think there is any significant reason why they would have to raise alot of capital. They have enough cash flow presently to raise the dividend, but it is really whether the government will feel comfortable with them doing that. I can't really see why they could not pay a 4-5 cent per quarter dividend now or in the next year. And I think they could easily manage a 10 cent per quarter dividend in 2014-2015. Cheers!