Its regarding the new lawsuits from the ny attorney, aig and bank of america cooperation that have been released today. If this lawsuits are real, then we will see bac back down to around $11 or lower. The total lawsuits involve a lot of money which maybe around 20 billions dollar. A quarter earning is 20cent to 30 cent, which equal to 2.3 to 3.5 billion. 20 billions will take around 2 years earning to pay.
I invested in bac at the price of $11.40 a few months ago. I was thinking to hold it for another year till $18 at least but the new lawsuits seems very fresh and may create a lot of uncertainties.
Please share your view regarding this matter. Thanks
The NY AG lawsuit is a threat. The update says he will sue if the mistakes are not corrected. So that is over. The AIG suit, if AIG in fact has a case, will most likely be settled out of court like MBIA case. Unfortunately, all this stuff coming at 3:30 pm, scarred a lot of people to sell. I have done that in the past, several times in fact, and lost money each time, as the stock bounced back in two to three days. So hang in, if you can.
This attorneys attempt at grand-standing wont work. Out of the thousands of new deals BAC has worked out, he found 129 that were not perfect..Instead of working with these employees to fix a few things he wants headlines. I think this will be thrown out in a year, or else BAC will throw a few million $ at it and move on.
BAC will NOT make any more mistakes,..so says the BOD in person. They are starting to make some more loans, but only to well qualified businesses and select home buyers. They will NOT be (pressured) into another debacle like Countrywide.