Bank of America to take more money from tarp

#3
#3
rjd970 said:
I thought BoA was strong?
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they are, but this type of unencumbered Tier 1 capital is just too hard to pass up for them. They're using Merrill as an excuse, but they want the capital. It allows them to be a buyer of the cheap assets available out there today.
 
#4
#4
BigPapaVol said:
they are, but this type of unencumbered Tier 1 capital is just too hard to pass up for them. They're using Merrill as an excuse, but they want the capital. It allows them to be a buyer of the cheap assets available out there today.
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So are you saying they really don't need the funds, per se, but are trying to get it to do good business?
 
#5
#5
rjd970 said:
So are you saying they really don't need the funds, per se, but are trying to get it to do good business?
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Most of the banks I know are getting the cash as just in case funds or using it to buy large distressed asset pools like struggling banks. It's certainly not being used to free up capital to make loans as it was intended.
 
#6
#6
Droski, what advice are you giving your clients that are holding bac, c.....especially with the talk of dividend cuts?

Also, is your firm national?
 
#7
#7
swampvol said:
Droski, what advice are you giving your clients that are holding bac, c.....especially with the talk of dividend cuts?

Also, is your firm national?
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we're holding onto all financials. i imagine BAC will get a similar deal to C and if it does the stock should rally. Sooner or latter the bleeding will stop and these stocks will double.


I work for a national firm.
 
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