Bank of America

Banking On The Banks: Is Morgan Stanley A Buy?

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According to Richard Bove, you’d be stupid to even think no.  While Bove is right, it’s lagged all but one of the big banks (WFC) with just a 30% gain YTD, that doesn’t have any effect on future results.  The catalyst here is the full merger with Citi’s remaining 49%.  Morgan Stanley Smith Barney is at present, a mash up of decades worth of mergers and acquisitions with very little though given toward how to seamlessly blend the smorgasbord of corporate entities into a well oiled machine (Trust me.  I worked there).  The computer systems are a mess (supposedly being … Read more

Bank of America Blows Past $6 as Financials Surge – Stocks To Watch Today – Barrons.com

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Bank of America Blows Past $6 as Financials Surge Bank of America (BAC) has recently displayed a strong reaction to headlines, especially having dipped below the $5 handle just over a week ago.  Today saw a similar instance where the bank posted a 8.6% gain during market hours based on…  nothing??  Now the far reaching rumor of The White House’s supposed trillion dollar bailout plan could certainly be considered a catalyst for such a strong upward move, but that would suggest that such a plan would be of benefit to the Bank.  When an institution’s source of income is from … Read more

Buffett’s Berkshire to Invest $5 Billion in Bank of America

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Aug. 25 (Bloomberg) — Warren Buffett’s Berkshire Hathaway Inc. agreed to invest $5 billion in Bank of America Corp., aiding a lender hobbled by costs tied to subprime mortgages. Buffett’s company will get a 6 percent dividend on his preferred stock investment and warrants to buy 700 million common shares about $7.14 each, according to a Business Wire statement today from Omaha, Nebraska-based Berkshire. –Editor: Dan Kraut   Full article available @: http://www.businessweek.com/news/2011-08-25/buffett-s-berkshire-to-invest-5-billion-in-bank-of-america.html