Bank of America (BAC)

Paulson Calling For A Greek Default

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According to Paulson & Co., a hard default by Greece could spell economic disaster of unprecedented proportion along with the breakup of the Euro.  In his 2011 recap letter to clients, he estimates $117 billion will be needed to recapitalize banks and satisfy other monetary needs. Paulson & Co.: “We believe a Greek payment default could be a greater shock to the system than Lehman’s failure, immediately causing global economies to contract and markets to decline,” the hedge fund said in the letter, a copy of which was obtained by Bloomberg News. The euro is “structurally flawed and will likely eventually … Read more

Sallie Mae: Fees the Unemployed, Then Deletes Backlash on Facebook

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Nominal fees targeted at the demographics who will feel them most simply don’t work.  Bank of America thoroughly illustrated this concept with the short-lived monthly fee on their debit cards, resulting in a plethora of negative press and a number of former clients transferring assets to credit unions.  So why did Sallie Mae think applying a $50 fee to unemployed borrowers would work any differently?  Following BAC’s footsteps and a 100,000 name strong petition, Sallie Mae restructured the fee and now applies the money toward repayment of the loan.  Damage being done however, several people chose to speak out on … Read more

‘s 2011 Hedge Fund Performance

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John Paulson’s 2011 Hedge Fund Performance   Despite a rather disastrous mess of 2011, Paulson has managed to keep redemptions down to just 8%..  An impressive achievement nonetheless, but is it due to belief in the strategy or belief in the brand?  Either way, his performance is a good illustration of how timing can cause even the soundest convictions to run awry.  Don’t forget the importance of a solid hedge when dealing with a timely trade..   The numbers are in for John Paulson’s Paulson & Co. The hedge fund finished 2011 with depressingly low returns reports the New York … 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