Share buyback? They have been increasing the share count every year for the past 5 years! With the Billions in litigation yet to be settled you will be lucky to continue getting your penny. You certainly will see the share count increase in 2013 just like last year. Moronhan will get almost a qtr of a Million from longtards.
Share count history: 2008 = 4.5 BILLION, 2009 = 7.7B, 2010 = 9.8B, 2011 = 10B, 2012 = 10.8BILLION,
2013 = ?????BILLION
Check out the insider Board and CEO free shares given and cashed in every month! Moronahan receives a Quarter of a MILLION shares each year for free without even sending you a Christmas card to thank you...
I believe that you have guessed correct. BAC has just over 10 billion shares outstanding so paying a $.05 per share each quarter for all 4 quarters is only a $2.2 billion expense. I always thought that BAC would request between $3-4 billion between dividends and buybacks for 2013. The stress test results concerned me as BAC did not perform as well as I hoped. I was hoping for a number over 7% rather than 6.8%. So given the results BAC has capital room of $21 billion over the required 5% (in distressed situation). Given the remaining liabilities due to countrywide, it would be reasonable to ask for only $3-4 billion which leaves plenty of excess capital on the sideline and allow the Fed to easily approve. If BAC can clear up more legacy "Countrywide" issues during the remainder of 2013 (I am thinking between $10-15 billion), then 2014 stress test results would allow for another hike of $3-5 billion. It will take about 4-5 yrs to build the dividend to a respectable $.20 per quarter.
First, I don't think you wil see both of those numbers. Youf div number could be right (although I'd really like to see 10). I don't think the fed will let them buy back 1b shares, but I pray you're right. That would be awesome. Share price is not higher because of Citi. Last week C announced a puny little buyback (or what they asked permission to do) and skyrocketed. Why? Certainty. The market does not like uncertainty, which is what we have now. And because of C's actions last week, I think it killed any rally until the news is known (and notice that C has give back pretty much all it gained on their preannouncement.). So Thurs after hours (unless it's leaked earlier) and Fri should see a lot of movement either up or down on all bank stocks.