Exactly. That's what we just need to keep telling folks that complain about all the trash posts. Keep telling them to stop complaining and do something about it. It's so easy even a liberal can do it.
LOL! I think you might be imagining things as there is NO $16 billion payment to Holder or anyone else. The CASH portion of the settlement was $9 billion and some of that is going directly to multiple states. The rest will be accounted for in mortgage loan modifications, forgiveness, etc., some of which they'll get credit for what they've already done.
You don't even deserve an 'E' for effort, but you have won a quick trip to ignore.
Because, as you said, it is a wholly owned subsidiary. Even if it was solely in the name of the subsidiary BAC, as the holding company, would still have to pay.
LOL! That's exactly what I was saying. That there will be a loss is not news, we knew it as soon as the announcement was made. Where were you, hiding under a rock?
BAC announced they would be taking a $5.3 billion charge in Q3 the day the settlement was announced. This is NOT news.
Agreed. With Boomers moving into retirement, the US approaching self sufficiency in oil, manufacturing moving back on shore, there is a vast change taking place in the economy that will become much clearer as time goes by. Changes like this aren't very smooth but they carry us to even higher levels than before.
And how long have you been around this stock? C'mon, don't tell me you're falling for the outlandish claims that get posted here. Plenty of us have been saying it's going to take time and patience. I've been invested, and closely following, this stock for over 20 years and I can assure you people have been saying the same things, making the same complaints for that entire time. And yet, during that time it went through 2 stock splits after hitting record highs, multiple mergers, etc. Yet even while the stock was hitting those record highs people were complaining about what a dog this stock was. If you keep focusing on the hour by hour, minute by minute moves of this stock you will lose sight of the big picture. Step back, take a deep breath, have a nice cup of coffee or your favorite adult beverage, and enjoy the ride. We'll get there, but it's not going to happen today or tomorrow.
As you know, I sold most of mine back when it was still $45. However, rebuilding since the bottom has been quite profitable.
Don't hold your breath as it may be hazardous to your health. No reputable analyst would make such a comment.
Beyond the $5.3 billion charge they've already announced they are taking in Q3, the rest will get absorbed in daily operations since it has to do with loan modifications, forgiveness, etc. The tax deductions will be a gift that keeps on giving for some time.
Well, for one thing, there will be no further changes in the dividend for 2014. So the total this year will end up at $.10. In case you've forgotten, they won't go through the next stress test/capital plan approval phase until early next year. Because of that I'm thinking your $.25 will apply to all of 2015, then so on. Don't expect to see huge increases every year, most probably in the $.05 cent per quarter range. BAC still has to pay that dividend on over 10 billion shares and it will take many years of share buybacks to knock that number down significantly. In addition, I don't expect the Feds will allow the banks to go crazy on paying out the money. We are still marching toward Basel III and since they keep tightening the rules, requiring the banks to hold more and more capital, it's all going to be a slow process.
You need to pay attention. All those bad mortgages are being cleaned off the books at a fairly steady rate. If I remember correctly, more than half of them are gone now. Plus, with the overhang of huge settlements now gone, the future looks much clearer. The simple fact is, BAC has been dealing with the mess and it's close to being cleaned up completely. Don't lose sight of the fact that nothing is static. Pay attention to what is going on around you.
Quite the contrary. BAC was pulling in over $5 per share before the crisis, so normalized earnings of $2 per share are about right.
That would cause me some nervousness if that happened. That is way above what has been historical valuations and I don't really see any valid reason, other than a speculative bubble, for something like that to become the new norm. We have yet to see the full impact of baby boomers withdrawing funds from their retirement accounts, but once that gets into full swing I believe it will help put a cap on market valuations.
It depends on how they get there. If it is due to revenue growth, but expenses remain high, I would think p/e in the range of 10-12 would be more likely. If it is revenue growth plus reduced expenses, then a p/e would be possible, but that is really at their historical high point so not sure how long it could be sustained. If no revenue growth but reduced expenses, then I would think a p/e again in the 10-12 range.
We'll get there barring a big drop in the stock market. Once we get past Q3 earnings it should be all systems go. Even though we all know Q3 earnings will be negative due to the settlement, it is still a psychological drag on the stock price until we get it behind us.