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Non-Tech : Bank of America -- Ignore unavailable to you. Want to Upgrade?

To: tcd who wrote (1330)	10/27/2009 9:55:46 AM
From: Keith Feral	Respond to of 4366

3 billion shares? Doubtful. Bove is probably trying to manage expectations to the lowest possible level. I wouldn't be surprised to see BAC be forced to go through another big round of capital raising. They have 1/3 of BLK, Columbia asset mgmt, First Republic, and 11% of CCB. They aleady have a $1 billion deal for part of Columbia, and a $1 billion deal for First Republic. They could generate another $2 billion from Columbia, $5 billion from BLK, and $20 billion from CCB. I'm just not sure on what basis the government will be allowed to single out BAC for further capital raising, unless they lift the bar for everyone.

To: tcd who wrote (1330)	10/27/2009 11:31:54 AM
From: Keith Feral	Read Replies (2) \| Respond to of 4366

Fine tuning the opportunities for BAC to raise capital $15 billion - CCB Q3 2011 lock up $2 billion - Columbia and First Republic (maybe another $3 bln) Q1 2010 $11 billion - Blackrock (1/3 of $45 bln market cap) If BAC returns to profitability soon, or at least puts an end to the $6 billion in quarterly writedowns from MER CDS charges and other 1 time losses, they would be able to generate a boatload of capital for the next several quarters as they get back to normalized earnings in the second half of 2010. The only reason for BAC to sell any shares in the near term would be for mgmt to serve it's own near term interests to restore their pay cuts. BAC should sit back and pay the $700 million TARP divvies for a couple more quarters til they improve their TCE, T1Capital, and T1Common ratios.