Comments on: Bank of America Approves $3.75 Billion Share Repurchase

By: Anonymous

Anonymous — Thu, 24 Jul 2008 06:07:00 +0000

Reminds me of Home Depot taking out loans to buy back their own stock.

By: Jesse

Jesse — Thu, 24 Jul 2008 02:15:00 +0000

Agree in general however this was apparently not a NEW purchase, but a diminished continuation of a prior program.

As such, it was market manipulation and a bit of financial sector ‘welfare queen’ egregiousness.

http://jessescrossroadscafe.blogspot.com/2008/07/bank-of-america-to-buy-back-75-million.html

By: Fledermaus

Fledermaus — Wed, 23 Jul 2008 21:46:00 +0000

I guess a bunch of management stock options must be vesting soon. Hopefully they’ll remember to reset the strike price as well.

By: Ransom41

Ransom41 — Wed, 23 Jul 2008 21:02:00 +0000

Financed in part by a GBP1.25 Billion UK note sale.

By: S

Wed, 23 Jul 2008 20:23:00 +0000

Totally agreew this is part of an orchestrated PR campaign beginning with the div raise at WFC, who might be well managed is in the unenviable position of being homesteaded in the most overvalued RE market. Then again NY/CT is still unde the radoar and that dirty little secret will eventually find its way into MSM. Would go so far as to think that Buffet had a hand in inching up that dividend as one in a serioes of confidence building measures for the banking system. Bill Gross had the analogy right on the agency debt, hiding under the unbrella, and that analogy holds for the protected banks. The probelm is that there is no real bid for these compnies. The short cover rally will end and then they will go to raise capital and suffer the HBOS fate. Think about that LEh deal whicyh was placed with strategic long term investors who agreed not to short it. perhaps JPM and BAC can raise money because they are simply not going away, but anyone buying the issues will lose money. Govt also trying to get spreads down for banks so as not to retard the pillaging being done via NIM expansion. This is desperation pure and simple.
who will buy this garbage is the equit susbidy team via the long only 401K folks, i.e. you, who have already lost their shirt buying this garbage during one of those other once in a lifetime opportunities.

By: Tom Lindmark

Tom Lindmark — Wed, 23 Jul 2008 19:59:00 +0000

It is all part of the PR campaign to talk up the financials’ stocks so that they can go out and get capital at less dilutive prices. I frankly doubt it will work but it is a well orchestrated operation.

If you haven’t seen it yet, you might want to check out Holman Jenkins article in the opinion section of the WSJ today.