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

To: ValueGuy who wrote (43454)	7/20/2011 10:21:04 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78702

>>Disclosure: Long BAC (small position) and BK (questioning this move now as Moody's warned that they might put this bank under possible downgrade as a direct effect of any impasse over the us debt ceiling, though i suspect it will be more than BK that will suffer!). Don't do many leaps now as got burnt on some APC and F leaps. I'd rather sell options nowadays<< All US banks will be downgraded, regardless of the debt ceiling or not. This was already communicated from the rating agencies a while ago. The reason being that implied support by the US government in case of a failure may not be forthcoming any more in the future. BAC will receive the biggest debt downgrade - I believe it's 4 notches. FWIW, I do not think it matter much for shareholders but it may matter for holders of bank debt. BK will only receive a 1 notch downgrade, the smallest amongst all banks, if I remember correctly.I do like BK as well, it is one of my largest position overall and my largest bank stock position.