S&P MAINTAINS STRONG BUY OPINION ON SHARES OF BANK OF AMERICA
S&P MAINTAINS STRONG BUY OPINION ON SHARES OF BANK OF AMERICA Monday 10/26/2009 2:54 PM ET - Standard & Poor's Research Notes BAC's shares are trading lower today, likely due to an unconfirmed story in The Wall Street Journal saying that talks with the government to repay TARP have "run into a snag." With Tier 1 capital of 12.46%, well above peers, we think BAC has adequate capital to withstand further losses. While we think the government may be loathe to allow BAC to repay TARP until the bank can prove it can operate profitably, further diluting shareholders, as the article suggests, seems unnecessary at present. The threat of regulatory reform may also be weighing the shares.
We got it the tenth time. Give it a break and look to add at a lower price. S&P can't beat the political intelligence that is bringing this down. If the news gets confirmed, this whole S&P view will change and you will be on the wrong side of it.