Thanks,djia;
Not sure I have the time or ability to analyse all that info but a few comments, the bank made 15 billion for the year and has a market cap of 158,543.1M
"We had a negative CDO and subprime related charges during the quarter of $5.3 billion, $4.5 billion is reflected in trading and $750 million recorded in other income. Provision expense rose to $3.3 billion and included additions to reserves of $1.3 billion."
No big deal on the earnings but
"The first mortgage originations across the company were approximately $25 billion, an increase of 5% from last year and although down originations from the previous quarter, our direct consumer market share continues to grow despite the market disruptions. Mortgage banking income on a consolidated basis increased $231 million to $386 million on a linked quarter basis, mostly from higher servicing income. Average home equity loans are up 5% from the third quarter after adjusting for LaSalle"
If it originates 25 billion a year it's exposure could be and should be larger than the figures mentioned here. I need help in finding exactly how much of total exposure they have from those CDo's, helco's etc. It has to be more than the 12.1 billion he refers to. Do they sell all of there mortgage loans including equity loans, (HELCO's)? Or is he just not giving those numbers?
"Now on the CDO side, our losses in the quarter were $5.1 billion after excluding the subprime whole loan marks just mentioned. This includes charges associated with our super senior exposure, counter party risk associated with wraps on our insured super senior exposure and other sales and trading exposure including the CDO warehouse. The super senior CDO exposure, before adjusting for the write downs on our super senior piece is shown in the supplemental information we’ve provided. The highlighted column which shows $12.1 billion, again before our write downs, depicts our subprime exposure that is not insured and where subprime consumer real estate loans make up at least 35% of the ultimate underlying collateral. Approximately $4 billion of our marks were against this exposure."
Homebuilder exposure was $14 billion at year end from a utilized or outstanding view and $21.6 billion in total commitments reflecting the LaSalle addition. 39% of our homebuilder exposure is listed criticized and while it could move higher, we believe the portfolio is well collateralized and reflects both granularity and geographic diversity.
This too would be a red flag in this real estate environment but if total exposure is 21.6 b it isn't unmanageable. basically I couldn't find what I was looking for which was how much RE related debt they have. Bear Stearns was a multi-billion dollar firm too until it wasn't solvent. Not saying BAC is in anything like that shape but thats why i want to see the numbers-do you know?
regards
R. |
