BAC-WT - Bank of America Warrants

[MYDemaray]

Agree...seems to be Merrill.  Frankly I'd be surprised if any major issuers weren't under investigation by the NYAG

[MYDemaray]

Anyone know if BAC/Merrill has entered a tolling agreement with the NYAG?  Statute of limitations on Martin Act is 6 years..

[PlanMaestro]

Anyone know if BAC/Merrill has entered a tolling agreement with the NYAG?  Statute of limitations on Martin Act is 6 years..

 

Not sure but I would say yes.

 

http://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/bac-wt-bank-of-america-warrants/msg89795/#msg89795

[nkp007]

At some point in the future (probably 2019), I'm going to figure out a way to compile this entire thread into a (free) book. It'll be the best case study on the analysis and psychology behind a great investment.

[racemize]

At some point in the future (probably 2019), I'm going to figure out a way to compile this entire thread into a book. It'll be the best case study on the analysis and psychology behind a great investment.

 

yeah, these threads are great, but when they are up at 300 pages, and you are trying to find something mentioned somewhere in the last 6 months, it is a pain.  Tremendous information though.

[rkbabang]

At some point in the future (probably 2019), I'm going to figure out a way to compile this entire thread into a (free) book. It'll be the best case study on the analysis and psychology behind a great investment.

 

The only thing I object to is "free". When you are ready, put it up on kickstarter, I'd be willing to pay for it and I'm sure many others would be too.  By 2019 this thread will be 10 times the size it is now and it will be quite an undertaking to go through it all and condense it into a readable ebook.

 

Here's two books I've recently donated to on kickstarter:

 

http://www.kickstarter.com/projects/1030212426/kim-jong-il-the-unauthorized-autobiography

 

http://www.kickstarter.com/projects/weiner/science-ruining-everything-since-1543-an-smbc-coll

 

 

[nkp007]

At some point in the future (probably 2019), I'm going to figure out a way to compile this entire thread into a (free) book. It'll be the best case study on the analysis and psychology behind a great investment.

 

The only thing I object to is "free". When you are ready, put it up on kickstarter, I'd be willing to pay for it and I'm sure many others would be too.  By 2019 this thread will be 10 times the size it is now and it will be quite an undertaking to go through it all and condense it into a readable ebook.

 

Here's two books I've recently donated to on kickstarter:

 

http://www.kickstarter.com/projects/1030212426/kim-jong-il-the-unauthorized-autobiography

 

http://www.kickstarter.com/projects/weiner/science-ruining-everything-since-1543-an-smbc-coll

 

Smart. Proceeds to this site then.

[xazp]

CCAR is coming up over the next two weeks.  The results will be a big deal for the banks, in particular BAC and C.

 

Anyone want to guess the dividend and buyback amounts approved? 

 

My guess:  dividend maintained at .01, buyback of $7Bn.

[racemize]

CCAR is coming up over the next two weeks.  The results will be a big deal for the banks, in particular BAC and C.

 

Anyone want to guess the dividend and buyback amounts approved? 

 

My guess:  dividend maintained at .01, buyback of $7Bn.

 

I'll make a poll for each.

[PlanMaestro]

Call Report Cost of Funds 2012 (% Assets).

 

Wells Fargo 0.24%

Bank of America 0.26%

JP Morgan 0.34%

Citigroup 0.74%

 

Zions 0.16%

Fifth Third 0.26%

M&T 0.3%

Suntrust 0.35%

Regions 0.35%

BB&T 0.48%

US Bancorp 0.49%

TCF 0.53%

[Parsad]

CCAR is coming up over the next two weeks.  The results will be a big deal for the banks, in particular BAC and C.

 

Anyone want to guess the dividend and buyback amounts approved? 

 

My guess:  dividend maintained at .01, buyback of $7Bn.

 

Whatever way you want to slice it.  I said that they would return $7B of capital some time ago...dividends and buybacks.  I don't see them doing any less, and I don't see the government stopping them from doing it.  It's BAC's time!  Cheers!

[PlanMaestro]

http://farm9.staticflickr.com/8513/8521484407_e01ff88a15.jpg

 

Call Report, Cost of Funds  (% Assets)

2004-2012

 

Bank of America 1.08% 1.85% 2.74% 2.89% 1.89% 0.77% 0.55% 0.38% 0.26%

Wells Fargo 0.79% 1.48% 2.34% 2.46% 0.55% 0.55% 0.42% 0.33% 0.24%

JP Morgan 1.06% 2.01% 2.80% 2.88% 1.68% 0.60% 0.46% 0.46% 0.34%

Zions 1.11% 1.62% 2.32% 2.64% 1.81% 0.87% 0.41% 0.27% 0.16%

[nkp007]

Hopefully this is an epic month. Even if it's not, it's not like half of book value is pricing in much upside anyways.

[Kraven]

CCAR is coming up over the next two weeks.  The results will be a big deal for the banks, in particular BAC and C.

 

Anyone want to guess the dividend and buyback amounts approved? 

 

My guess:  dividend maintained at .01, buyback of $7Bn.

 

Whatever way you want to slice it.  I said that they would return $7B of capital some time ago...dividends and buybacks.  I don't see them doing any less, and I don't see the government stopping them from doing it.  It's BAC's time!  Cheers!

 

I am trying to figure out what I will do with that dollar I expect to win.

[Parsad]

CCAR is coming up over the next two weeks.  The results will be a big deal for the banks, in particular BAC and C.

 

Anyone want to guess the dividend and buyback amounts approved? 

 

My guess:  dividend maintained at .01, buyback of $7Bn.

 

Whatever way you want to slice it.  I said that they would return $7B of capital some time ago...dividends and buybacks.  I don't see them doing any less, and I don't see the government stopping them from doing it.  It's BAC's time!  Cheers!

 

I am trying to figure out what I will do with that dollar I expect to win.

 

You can buy a slurpee, or a bacon cheeseburger at McDonald's, or a small bag of potato chips or let it ride till our next bet...double or nothing!  ;D  Cheers!

[Uccmal]

I am thinking there will be some dividend increase right away, barring total disallowance of such from the regulator.  I thought the 0.04 cents per Q, an increase of .12 cents or 1.2 Billion, at a minimum. 

 

The rest to buy backs, and interest payment reduction (buying in higher priced debt). 

[PlanMaestro]

VIDEO: FDIC quarterly report.

https://mp163425.cdn.mediaplatform.com/163425/wc/mp/4000/15861/21711/23059/Lobby/default.htm

 

Written report.

http://www2.fdic.gov/qbp/2012dec/qbp.pdf

[Kraven]

CCAR is coming up over the next two weeks.  The results will be a big deal for the banks, in particular BAC and C.

 

Anyone want to guess the dividend and buyback amounts approved? 

 

My guess:  dividend maintained at .01, buyback of $7Bn.

 

Whatever way you want to slice it.  I said that they would return $7B of capital some time ago...dividends and buybacks.  I don't see them doing any less, and I don't see the government stopping them from doing it.  It's BAC's time!  Cheers!

 

I am trying to figure out what I will do with that dollar I expect to win.

 

You can buy a slurpee, or a bacon cheeseburger at McDonald's, or a small bag of potato chips or let it ride till our next bet...double or nothing!  ;D  Cheers!

 

All fine options. I thank you sir for the top notch ideas. I suppose in the slim chance I lose you could consider these for yourself as well!

[mankap]

Hi Parsad

where is $7B no. coming from?

Has BAC indicated that the are trying to get approval for $7B from Fed

 

[ERICOPOLY]

It's funny how much a dividend this year vs next will move the stock.  It really barely makes much difference (pennies) if you discount a dividend by an extra year to account for having to wait for it.

[Cardboard]

http://m.yahoo.com/w/legobpengine/finance/news/credit-suisse-settles-mortgage-case-234849257.html?.intl=us&.lang=en-us

 

Another bank settles with a monoline insurer, yet Brian Moynihan and team continue to procrastinate regarding their own case with MBIA. The more I read about it, the more it is shocking to me. While the amount to settle this one is much larger than the other ones we read about in the news, the issues brought up by the monolines are no different. Possibly another large difference is that Brown at MBIA knows that he has got a rock solid cause in court and he's not willing to accept: an uneconomical settlement using his own terms.

 

However, MBIA is getting much weaker financially as this drags on hence justifying BAC strategy, but listening to MBIA latest conference call, you can also understand that BAC may lose that advantage once MBIA is seized by regulators which looks probable within 6 months or so (unless Warburg and/or Berkowitz provide additional funding which is another card not talked about now). By then, they will also have lost a major benefit that they have now which is to negotiate privately very favorable terms for their own insurance contracts with MBIA: commutations or otherwise. Dealt intelligently, a favorable settlement for MBI on their put backs with BAC combined with a favorable settlement for BAC on their contracts at MBI could be a big win for both. And of course, the more this drags on, negative verdicts in court are likely to come for BAC which will make other settlements such as the one being challenged by AIG more expensive.

 

So settling with MBI, may end up costing next to nothing to BAC or a big wash considering the benefits that they may gain. For us BAC holders, it would eliminate uncertainty and help investors, regulators and more importantly the bank to focus on what is important or doing banking and money.

 

Cardboard

[OracleofCarolina]

Curious that Francis Chou dumped a whole pile of BAC-WT-A.  If somebody gets a chance to chat with him at the FFH meeting in April, I'd love to know his rationale for reducing that position.  From my perspective, BAC-WT-A looks like a 30% annual gainer for at least a few more years.

 

 

SJ

 

I mentioned this in the recent Chou 13F thread, but it seems as though he has held onto his warrants in the Chou America funds.

 

http://www.chouamerica.com/pdf/123112%20Chou%20America%20Funds%20Annual%20Report%20Final.pdf

 

Chou annual report is out...not much to say..he loves OSTK and still likes the TARP warrants

 

 

[xazp]

BAC has settled with two other monolines, Fannie, Freddie, Gibbs Brun, a seemingly endless stream of government agencies, the Federal Reserve, and with past Merrill Lynch shareholders. Are you sure it's BAC that's dragging its feet here? 

 

 

http://m.yahoo.com/w/legobpengine/finance/news/credit-suisse-settles-mortgage-case-234849257.html?.intl=us&.lang=en-us

 

Another bank settles with a monoline insurer, yet Brian Moynihan and team continue to procrastinate regarding their own case with MBIA. The more I read about it, the more it is shocking to me. While the amount to settle this one is much larger than the other ones we read about in the news, the issues brought up by the monolines are no different. Possibly another large difference is that Brown at MBIA knows that he has got a rock solid cause in court and he's not willing to accept: an uneconomical settlement using his own terms.

 

However, MBIA is getting much weaker financially as this drags on hence justifying BAC strategy, but listening to MBIA latest conference call, you can also understand that BAC may lose that advantage once MBIA is seized by regulators which looks probable within 6 months or so (unless Warburg and/or Berkowitz provide additional funding which is another card not talked about now). By then, they will also have lost a major benefit that they have now which is to negotiate privately very favorable terms for their own insurance contracts with MBIA: commutations or otherwise. Dealt intelligently, a favorable settlement for MBI on their put backs with BAC combined with a favorable settlement for BAC on their contracts at MBI could be a big win for both. And of course, the more this drags on, negative verdicts in court are likely to come for BAC which will make other settlements such as the one being challenged by AIG more expensive.

 

So settling with MBI, may end up costing next to nothing to BAC or a big wash considering the benefits that they may gain. For us BAC holders, it would eliminate uncertainty and help investors, regulators and more importantly the bank to focus on what is important or doing banking and money.

 

Cardboard

[ERICOPOLY]

BAC has settled with two other monolines, Fannie, Freddie, Gibbs Brun, a seemingly endless stream of government agencies, the Federal Reserve, and with past Merrill Lynch shareholders. Are you sure it's BAC that's dragging its feet here? 

 

 

http://m.yahoo.com/w/legobpengine/finance/news/credit-suisse-settles-mortgage-case-234849257.html?.intl=us&.lang=en-us

 

Another bank settles with a monoline insurer, yet Brian Moynihan and team continue to procrastinate regarding their own case with MBIA. The more I read about it, the more it is shocking to me. While the amount to settle this one is much larger than the other ones we read about in the news, the issues brought up by the monolines are no different. Possibly another large difference is that Brown at MBIA knows that he has got a rock solid cause in court and he's not willing to accept: an uneconomical settlement using his own terms.

 

However, MBIA is getting much weaker financially as this drags on hence justifying BAC strategy, but listening to MBIA latest conference call, you can also understand that BAC may lose that advantage once MBIA is seized by regulators which looks probable within 6 months or so (unless Warburg and/or Berkowitz provide additional funding which is another card not talked about now). By then, they will also have lost a major benefit that they have now which is to negotiate privately very favorable terms for their own insurance contracts with MBIA: commutations or otherwise. Dealt intelligently, a favorable settlement for MBI on their put backs with BAC combined with a favorable settlement for BAC on their contracts at MBI could be a big win for both. And of course, the more this drags on, negative verdicts in court are likely to come for BAC which will make other settlements such as the one being challenged by AIG more expensive.

 

So settling with MBI, may end up costing next to nothing to BAC or a big wash considering the benefits that they may gain. For us BAC holders, it would eliminate uncertainty and help investors, regulators and more importantly the bank to focus on what is important or doing banking and money.

 

Cardboard

 

MBI made a deal with Merrill before BAC bought Merrill -- now MBI seems to want Merrill to commute it for free because BAC now owns Merrill

MBI made deals with Countrywide that would have sunk them if not for BAC's purchase of Countrywide -- MBI's rhetoric today appears to paint BAC as if they deliberately ruining MBI's ability to continue with their business  (which ignores the fact that MBI put themselves in that position before BAC was even on the scene)

 

So MBI seems to be claiming that they should be getting something for free (the commutation) simply because BAC purchased Merrill and Countrywide.  These people (MBI) might not even be a going concern today were it not for BAC.

 

I can see where BAC management might not want to give away anything for free (the commutation).  Why has MBI deserved such a gift?  The language of the MBI CEO's letters might also be making an amicable deal difficult.

 

 

[Parsad]

Hi Parsad

where is $7B no. coming from?

Has BAC indicated that the are trying to get approval for $7B from Fed

 

No, that is my number.  They could be asking for more or less, but I think that is around the number they will pay out this year based on their capitalization.  If it was solely based on capitalization, they could pay out twice as much, but they still have some legacy issues, so I think that will weigh into any Fed decision.  As those legacy issues go down, they will pay out more and more.  Cheers!