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Post by surefire on Sept 14, 2008 21:14:13 GMT -5
Anyone have an opinion on this? As a Bank of America shareholder, I am concerned about them taking on more than they can chew-- especially with their cash reserves. biz.yahoo.com/ap/080914/merrill_bank_of_america.htmlBest case scenario, I see this as being a speculative long-term move. |
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Post by The Big Dog on Sept 14, 2008 21:38:59 GMT -5
Another in the parade of banks making themselves into complete financial services plays. B of A is just kind of late getting in the game. With Merrill Lynch they are taking on a massive debt load and a portfolio that is heavily leveraged into the ultrasoft mortgage market. I'd have to believe the powers that be B of A had to swallow pretty hard to generate the will to pull the trigger. That said, the Merrill Lynch brand is (presumably) golden and it will have to be to give any kind of support for the very generous $29 per share offer.
I'm wagering B of A takes at least a ten percent hit in their stock price at the opening bell Monday morning.
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Len
Apprentice Member
Posts: 74
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Post by Len on Sept 16, 2008 7:00:53 GMT -5
What a difference a day makes. Now BofA is the largest investment house in the world, the largest consumer bank in the USA, and the largest retailer of mortgage loans!
So if, and when, they go belly up our gov't will HAVE to step in.
Heard last week on the Clark Howard Show that a bank tracking website has a 0 to 99 scale with 99 being great for solvency. BofA came in at 17 while City Bank Corp came in at 1. Prior to yesterday, City Bank was The Largest Bank.
We are in DEEP kim shee.
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