AGXIIK provides a summary of Bank of America's finances as its stock makes a $4 handle.
Estimated real value of mortgages marked to market by Bank of America? Loss of $150 billion
I guess 'marked to market' is not a very popular phrase around the BOA board room...
I did a quick analysis of Band of America financials and stock price.
Stock price year
$55 / share 2006
$5 / share 2008 Lehman crash
$15 / share 2010
$5 / share today
90% plus decline in 2 years 2006 to 2008. 200% increase to 2010. 65% drop since 2010 despite reasonable stock market. 90% drop in stock price in 5 years.
Buffett invests $5 billion this year at $7 a share. Sorry Warren. Moynihan got ya.
B of A sells $17 billion of China Bank stock to get cash back from losses.
Cash flow loss in last 5 quarters $28 billion. Warren, you just filled the bank coffers. Can you spell bankster?
Total net loss in 5 quarters $12.2 billion.
Total asset decline in 5 quarters. $20 billion
Virtually no change in loans on the books. I guess 'marked to market' is not a popular phrase around the board room. Estimated real value of mortgages marked to market. Loss of $150 billion.
My prediction. B of A fails in 2012 due to horrendous losses on Euro bonds and residential mortgages from the Countrywide purchase. I might be wrong but when the largest bank in the US has a penny stock price, that is not a good sign. Account with B of A. Maybe you might change to a smaller bank.
Ben Benanke might be a little pissed at me but his problems with B of A are not mine.
