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Housing stock market is just sought no stock is getting beat up more than Bank of America with endless litigation and the CEO Brian one hand.
That does not inspire confidence the stock now trading at levels not seen since the financial crisis.
Charlie gas Rio has the inside details of how wise giving standing out among all of the other reckons it today these.
Other banks are down today no doubt about that I mean who were we -- but if we if we're down through the 25 points on on the -- in of itself but.
This is a special case I believe I mean this is this is a little different you do have.
A concerted bed and get this from talking to traders a concerted bad.
That be they will not be able to survive right now unless He gets new capital that is the -- that's going on in the market they believe when you add up.
All the stuff going on you know there's an -- is it -- AIG litigation or AIG is suing them for for some of them were backed securities -- -- -- other litigation out there.
You add all that plus this this is a CEO who I believe is a is a very competent guy but that He doesn't still competent sees it in with investors I will tell you that.
You had all that together and the stock today is getting crushed I mean there were at their trading below the last time lets them I look.
Well there we -- out -- I'm -- right now they're below seven dollars.
That is an amazing amazing.
Decline and that its share prices of that of that company does that mean capital come from potential -- -- stimulus TARP by boat which is which is point that I I talked analyst Dick Dick -- a who -- -- told me that you know now he's a bull on the stock just so you know.
A lot of people think if they get through this period can be great company -- -- big bank lots of branches of the Merrill Lynch.
Brokerage unit which is one of the best on Wall Street has a lot of reasons -- may be to buy that stock -- but you know we should one of the probate people places they will not have to raise capital.
He told us quote unquote BAC stock Bank of America stock can go to one dollar.
And a firm will not have to raise capital that's -- -- opinion.
Obviously Super -- most investors.
Today are not betting on that and you know one way to do it and one way Citigroup did it you know it -- -- all its problems back in 2009.
Is you do some sort of preferred conversion you convert -- convert your preferred stock into common equity at its -- capital -- you essentially raising capital.
And with city -- is that essentially screwed over its preferred shareholders by.
Buying back their preferred not -- floor but somewhere below par via and so -- really screwed shareholders but that's a cheap way of raising capital but you know you be hurt yourself in the market.
You know or maybe just a call one Buffett and and see if -- a little infusion I don't think -- -- with the audio maybe we'll make that 6000 share.
This informed -- the -- big Bank of America tomorrow.
Shares go on to 12 o'clock because it's confidence that there is about there's a bottom I think brunt of the -- investors have there's no bottom.
To the potential to the potential.
Losses because of litigation.
For and stuff remember the pet they own -- they -- countrywide.
They also package mortgage backed securities they sold them to people those securities blew up countrywide -- on direct relative security William.
Billionaires the other banks stayed -- -- Citi Italy's down the day I mean how much of this is timing bad timing on on B of -- part to be involved in this as you -- with the AIG stuff they have any kind of coming to the floor.
At this time when word dropping 15% held out.
Bad timing was nice of Goldman Sachs socialist chose stock price -- -- a chart of -- ethical was that -- -- adopt a 120 dollars a share.
To the huge decline mortgage like and that's -- Tina tell wants them to oppose -- -- below that.
Morgan Stanley's down Citigroup is crushed today the roll down but this is the real one this is when I saw that when I saw six dollars.
You know -- now this is just -- took envisages.
Of a debt spiral come -- -- had not -- it's gonna happen yet but when stocks but -- way.
Conventional wisdom was stocks.
Were considered a penny stock at five dollars right to close I'll tell you they down after the US downgraded and -- Fannie and Freddie then mainland financials.
Yeah I mean that comes that would coming in get some data comes down to refinances are so tied to down return of US.
Of the US off sovereign debt noting that it -- rely on the government for money no doubt thanks John.
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