Bank of America (BAC) Rallies Off Lows, But Fears Abound
Tweet
Share
E-mail
Get Alerts BAC Hot Sheet
Join SI Premium – FREE
After falling to 25 years lows earlier today on nationalization fears, shares of Bank of America (NYSE: BAC) have come roaring back. The stock is now down down just 6% after trading down 20% earlier.
There is apparently some talk going around that the mark-to-market could be modified.
We're not exactly sure how this would help the banks under an "aggregator" or "bad" bank scenario, as under this case the government is actually buying the toxic assets from the banks. If they buy, for example, assets that the bank has on their books at 70 cents on the dollar for let's say 50 cents on the dollar this is an actual transaction not a "mark to market." I guess it could help the assets that the banks don't sell to the aggregator bank.
There is apparently some talk going around that the mark-to-market could be modified.
We're not exactly sure how this would help the banks under an "aggregator" or "bad" bank scenario, as under this case the government is actually buying the toxic assets from the banks. If they buy, for example, assets that the bank has on their books at 70 cents on the dollar for let's say 50 cents on the dollar this is an actual transaction not a "mark to market." I guess it could help the assets that the banks don't sell to the aggregator bank.
You May Also Be Interested In
- SEC accuses ex-BofA senior banker Satsky of insider trading - Bloomberg
- BofA maintains underperform ratings on six BDC stocks
- BofA Securities Starts Mobility Global (MBGL) at Neutral
Create E-mail Alert Related Categories
Insiders' Blog, Rumors, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
