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Non-Tech : Bank of America

BAC 55.88

+1.1%

Dec 22 4:00 PM EST

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To: Qualified Opinion who wrote (3757)	11/9/2012 12:34:21 PM
From: deeno	Read Replies (1) of 4366

I don't think its exactly a "cave". during the debates I think the repub showed their hand. either means testing or restriction of those hallowed mtg tax deductions and property tax exclusions. So he is offering up what they have already intimated during the campaign. Whether the Democrats are willing to barter after a fresh win remains to be seen. As far as BAC is concerned I think that it will be very difficult for anyone in the industry to make to much money without drawing attention and new "fines". There seems to be a continued disgust of the banks still fresh in the publics mind. I originally felt that 2013 - 2015 would start seperating the banks into performers and non-performers. BAC by 2015 would be paying a decent dividend, earning a couple bucks per share, and trade to the mid to high 20's. Without any spread in rates though, a threat against the mtg deduction, and a backdrop of continued regulation everytime you see a profit, well push it out until 2017. A couple of years ago I said that the downside risk is they become a value trap. Any continued assault on the industry keeps the BAC trading range in the 8 -15 year range for the next 10 years.

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