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BAC share buyback 2013?


wescobrk

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Ericopoly, Parsad, and any others, curious when you think BAC will receive approval from the fed to buyback shares? 10.7 billion shares, it would be great to start shrinking that number!

 

They'll be close this year, but no cigar.  I think the Fed is still concerned about shocks to the system and making sure there is no repeat of 2008's liquidity crunch.  Another year of cash flow, resolution of more litigation, additional capital added to the balance sheet, and more bad loans run off the book.  The markets will start to recognize that as the year goes by...still say tangible book by Christmas and book within two years.  Cheers!

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The stock will have recovered before they can put a meaningful dent in the share count. 

 

At the risk of setting off another round I would rather see the cash than stock buy backs any day, regardless of the tax implications. 

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if bac doesn't get permission to buy back and put a dividend in place, that could be a catalyst for 15% down "from here". save some powder.

 

Why would they get permission when they haven't even asked?

just sayin that if they don't get permission whether they ask for it or not, and the other banks get permission, they will be perceived as weaker than the others. there may be speculators in the stock who think they may get permission when the others do. just a theory. may not happen. remember when all the banks had to take TARP at once, even though some didn't want to? It was to counter the perception that some banks were weaker than others. now it may be that the market already knows that they won't get to do a buyback when the others do. in that case it's clear sailing. :)

 

My crystal ball is pretty hazy so I have no grounds to argue. 

 

The significant thing about the Fed test results that I'm anticipating is this:

1)  encouraging that a 33-50 cent dollar can survive 13% unemployment, market meltdown, 7% GDP hit, and 20% real estate decline.

2)  The other banks will get positive news on their dividends and buybacks, and this should lift their valuations.  Given that BAC is trading relative to the others, it will also lift BAC. 

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