BofA needs 34bn$
Somebody please help me understanding this: BofA, capitalization 74bn$, needs to raise 34bn$ because it is apparently failing the requirements of the stress test. This would probably mean a diluiting of 50%. Yet the stock is up 7%.
Below from Yahoo! finance:
NEW YORK (AP) — Bank of America Corp. stock rose as investors appeared comforted by [...]
Global Recession?
From Mish’s Global Economic Trend Analysis, a concise representation of the current situation:
Global Recession Headed Our Way
The world is heading for a global recession and a sure bet is that it will be blamed on a subprime crisis in the US. The reality is the greatest liquidity experiment in history is now crashing to earth.
The [...]
Bank of America 10bn$ capital raise
How on earth a bank that spends 50bn$ to buy Merrill Lynch would after a month need to raise 10bn$ at a discount of some 20/30% versus market price, diluting existing shareholders, in a market that is extremely tight on cash? It seems to me that some people might not have understood how serious the [...]