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Strategies & Market Trends : Value Investing

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To: gcrispin who wrote (43384)7/18/2011 1:05:45 PM
From: Spekulatius  Read Replies (1) of 78634
 
re BAC - please notice that the capital buffer is starting to get phased in (0.5%) in 2016 and the 50B$ number is based on the requirements in 2019 assuming 2.5%). They have 8 years to earn this buffer. Alternatively they can sell their stake in Blackstone or China Construction bank. They also generate 20B$ in pre-tax operating earnings per year.

According to BAC presentation, they have enough capital to meet the requirements up to about 2017 right now. Not that it matters right now....
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