The request from the Fed was made in late July people..When BAC was flirting in the low 6's. Long before they raised additional capital and Buffett's investment..A month old news finally makes the headlines...Buy when fear spreads...
Actually bac was higher than 8.40 in July So things got even worse, as bac was in 6's In august. This is seriously negative for bac. If merril is spun off Bac would permanently be a $4 or $5 Stock. Where would future earnings come from?
Yeah! keep pressing on our scrotum, and see what happens. Gov't dysfunction at its worst! Gov't was largely responsible for this b.s. encouraging lending the way it did for years. The only choice for a bank was to play along, or stand up and say we can't write mortgages at these ridiculous standards. We have to close our bank & do the right thing.
I'd like to know what Uncle Sam's contingency plan is at this point.