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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: gcrispin who wrote (43384)	7/18/2011 10:01:35 AM
From: Madharry	Read Replies (1) \| Respond to of 78628

cramer on cnbc just said he continue to underwieight financials. bac looks like it conintues to be and continued short term decline today. Mr market seems content to let it drift downward for now. we will see if $9.50 holds. I guess it makes sense to wait till the earning report. i wonder if there is detailed info out there about bacs foreclosures and mortgage delinquencies. homebuilders are still way down in the negative saying they are bouncing along the bottom.

To: gcrispin who wrote (43384)	7/18/2011 1:05:45 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78628

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....