Parsad Posted August 11, 2011 Share Posted August 11, 2011 Here is the link to the Bank of America conference call that Bruce Berkowitz and Fairholme held yesterday. You just have to register to receive the stream. https://us.reg.meeting-stream.com/fairholmecapitalmanagementllc_081011/ Contrary to what the media said, for anyone investing in banks, you really should hear the call. Some great details on the current environment for banks. I wasn't able to listen to it yesterday due to the website being down. Also, while I was impressed with Moynihan in previous interviews, I'm equally impressed with the team behind him. These guys are smart and they know their bank. Are there risks? Yup, but these guys seem as capable as anyone else I've ever listened to in the banking industry. If they succeed, Ericopoly is never going to have to work again! ;D Cheers! Link to comment Share on other sites More sharing options...
PlanMaestro Posted August 12, 2011 Share Posted August 12, 2011 Sanjeev, what is your reaction to how they handled that last question (exposure to European banks)? Link to comment Share on other sites More sharing options...
Parsad Posted August 12, 2011 Author Share Posted August 12, 2011 They have exposure, but they feel it is manageable. That's a risk that most major banks with international units have exposure to. About the only large scale U.S. bank that has no such exposure is Wells. And then you counter that risk with the progress they are making in their loan business, both residential mortgage and consumer loans, and their global investment business. As well as the lines of business they have moved out of. I really see alot of similiarities to Fairfax when they were struggling, and I was very impressed by their team on that conference call. It's not going to be easy, as Moynihan alluded to when it came down to the question of if BAC will be able to achieve a 1% ROA long-term. There are significant headwinds, but they certainly seemed to be up to the challenge. Also the fact that all of the executives on the call had alot of their personal net worth at risk in the company stock was terrific to hear. I certainly wouldn't recommend that anyone bet the farm on BAC (Eric!), but we've done our analysis and we have a comfortable size position through the warrants. Cheers! Link to comment Share on other sites More sharing options...
OracleofCarolina Posted August 12, 2011 Share Posted August 12, 2011 I think Moyinhan sounds like he is confident that BAC will turn around. But as a shareholder, this news kind of bothers me. http://online.wsj.com/article/SB10001424053111904823804576502680497287052.html?mod=asia_home Link to comment Share on other sites More sharing options...
Rabbitisrich Posted August 12, 2011 Share Posted August 12, 2011 I think Moyinhan sounds like he is confident that BAC will turn around. But as a shareholder, this news kind of bothers me. http://online.wsj.com/article/SB10001424053111904823804576502680497287052.html?mod=asia_home What looks worrisome? At face value, Moynihan requested the meeting to argue for regulatory pressure to resolve the lawsuits favorably. Link to comment Share on other sites More sharing options...
txlaw Posted August 12, 2011 Share Posted August 12, 2011 Interesting article on BAC's exposure to Countrywide liabilities: http://dealbook.nytimes.com/2011/08/11/for-bank-of-america-countrywide-bankruptcy-is-still-an-option/ Link to comment Share on other sites More sharing options...
dcollon Posted August 12, 2011 Share Posted August 12, 2011 Transcript from seekingalpha.com http://seekingalpha.com/article/286691-bank-of-america-corporation-special-call Link to comment Share on other sites More sharing options...
rranjan Posted August 12, 2011 Share Posted August 12, 2011 Transcript from seekingalpha.com http://seekingalpha.com/article/286691-bank-of-america-corporation-special-call Thanks for posting the link. Link to comment Share on other sites More sharing options...
ERICOPOLY Posted August 15, 2011 Share Posted August 15, 2011 I certainly wouldn't recommend that anyone bet the farm on BAC (Eric!), but we've done our analysis and we have a comfortable size position through the warrants. Cheers! I've got 27% in the BAC warrants now, but the rise in price will keep me from buying more (psychology). On Wednesday I was adding more, getting some of it below $2.70 which just seems really attractive for a very long term call warrant. Then early on Thursday I went off for a 3 night camping trip north of Mazama in the Roadtrek, out of all communications range -- that makes the market volatility a lot easier to deal with. Thanks for getting the board back up. Link to comment Share on other sites More sharing options...
Josh4580 Posted August 16, 2011 Share Posted August 16, 2011 Good article on Moynihan recent divestitures in Bloomberg "Moynihan Unravels Another Lewis Deal as BofA Exits Non-U.S. Card Business" http://www.bloomberg.com/news/2011-08-15/bank-of-america-to-sell-canada-credit-cards-to-td-exit-u-k-ireland-unit.html Link to comment Share on other sites More sharing options...
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