Comments on: Bank of America Buys Merrill For $29 a Share http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29.html Sun, 22 Nov 2009 11:45:14 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: russell1200 http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29.html#comment-15301 russell1200 Mon, 15 Sep 2008 07:39:00 +0000 http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29-a-share/#comment-15301 The banking part of B of A was in hiring freeze mode almost 2 years ago, but for obvious reasons never made a public deal of it. Commercial bankers have access to some pretty good real time information.<br/><br/>Whether they can swallow all this garbage is another matter. The banking part of B of A was in hiring freeze mode almost 2 years ago, but for obvious reasons never made a public deal of it. Commercial bankers have access to some pretty good real time information.

Whether they can swallow all this garbage is another matter.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29.html#comment-15299 Anonymous Mon, 15 Sep 2008 06:58:00 +0000 http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29-a-share/#comment-15299 ya...for anyone with liquid assets that exceed the FDIC deposits/SIPC limits, you now know where to keep your money. ya…for anyone with liquid assets that exceed the FDIC deposits/SIPC limits, you now know where to keep your money.

]]> By: Matt Dubuque http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29.html#comment-15291 Matt Dubuque Mon, 15 Sep 2008 06:03:00 +0000 http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29-a-share/#comment-15291 On the bright side, this buyout will cause some pretty serious losses by those who believed that perpetually betting against the competence of rising star Federal Reserve Geithner was risk free.<br/><br/>If B of A ever gets in a jam, the Fed will not forget this transaction in its treatment of them.<br/><br/>This transaction is the only bright spot in a day that has been full of bad news. It should be a stabilizing factor in the markets and help to support a hard landing instead of a crash.<br/><br/>Matt Dubuque On the bright side, this buyout will cause some pretty serious losses by those who believed that perpetually betting against the competence of rising star Federal Reserve Geithner was risk free.

If B of A ever gets in a jam, the Fed will not forget this transaction in its treatment of them.

This transaction is the only bright spot in a day that has been full of bad news. It should be a stabilizing factor in the markets and help to support a hard landing instead of a crash.

Matt Dubuque

]]> By: halbhh http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29.html#comment-15287 halbhh Mon, 15 Sep 2008 05:31:00 +0000 http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29-a-share/#comment-15287 don't forget plenty of us figured out a long while back that the big picture is...."reflate".... The sad only solution to the collapsing bubble of credit, since deflation vs debts is such a killer.<br/><br/>So....it's inflation that's the answer and the constant gradual plan. don’t forget plenty of us figured out a long while back that the big picture is….”reflate”…. The sad only solution to the collapsing bubble of credit, since deflation vs debts is such a killer.

So….it’s inflation that’s the answer and the constant gradual plan.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29.html#comment-15280 Anonymous Mon, 15 Sep 2008 04:31:00 +0000 http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29-a-share/#comment-15280 Fascinating comment, bg. The premium for MER does seem absurd, but then again, Ken paid up for Countrywide when he could have just bought the relevant assets out of bankruptcy. <br/><br/>Ben and Hank will clearly not let B of A go out of business, but that doesn't mean that shares couldn't lose 60% of their value over the next three months, as people become a little more sensitive about balance sheet chicanery. The same is true for Wells Fargo. Fascinating comment, bg. The premium for MER does seem absurd, but then again, Ken paid up for Countrywide when he could have just bought the relevant assets out of bankruptcy.

Ben and Hank will clearly not let B of A go out of business, but that doesn’t mean that shares couldn’t lose 60% of their value over the next three months, as people become a little more sensitive about balance sheet chicanery. The same is true for Wells Fargo.

]]> By: bg http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29.html#comment-15277 bg Mon, 15 Sep 2008 04:07:00 +0000 http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29-a-share/#comment-15277 two questions to anyone listening.<br/><br/>Bill Gross called the merrill/boa merger a 'rumor' and that BofA was 'unlikely' to have agreed to such a high price with short notice.<br/><br/>Also...<br/><br/>Its 12:05am. do you know where your LEH bankruptcy is?<br/><br/>I think this story is still alive. two questions to anyone listening.

Bill Gross called the merrill/boa merger a ‘rumor’ and that BofA was ‘unlikely’ to have agreed to such a high price with short notice.

Also…

Its 12:05am. do you know where your LEH bankruptcy is?

I think this story is still alive.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29.html#comment-15261 Anonymous Mon, 15 Sep 2008 02:51:00 +0000 http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29-a-share/#comment-15261 I believe it will get repriced but thain wanted to avert the stock getting crushed tomorrow.<br/><br/>All this smells. If BAC was concerned about share holder value, then they would wait and allow MER to get crushed tomorrow. Instead they put up 44 billion when perhaps they could have bought it for half that.<br/><br/>Some institutions are to big to fail but that doesn't mean they won't.<br/><br/>I question whether BAC can survive. If unemployment starts to soar, then BAC is toast. What is their international exposure? How does it compare to other banks? I believe it will get repriced but thain wanted to avert the stock getting crushed tomorrow.

All this smells. If BAC was concerned about share holder value, then they would wait and allow MER to get crushed tomorrow. Instead they put up 44 billion when perhaps they could have bought it for half that.

Some institutions are to big to fail but that doesn’t mean they won’t.

I question whether BAC can survive. If unemployment starts to soar, then BAC is toast. What is their international exposure? How does it compare to other banks?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29.html#comment-15258 Anonymous Mon, 15 Sep 2008 02:41:00 +0000 http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29-a-share/#comment-15258 Yeah, it makes you wonder who is running this Country. All this activity is more like a financial coup.<br/><br/>I know the US Treasury is going to hide true values of the GSEs using the Fed Reserve as the bank and its hidden accounting sheets. Yeah, it makes you wonder who is running this Country. All this activity is more like a financial coup.

I know the US Treasury is going to hide true values of the GSEs using the Fed Reserve as the bank and its hidden accounting sheets.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29.html#comment-15251 Anonymous Mon, 15 Sep 2008 02:34:00 +0000 http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29-a-share/#comment-15251 Seems like the proverbial battle line has been brought back about 100 miles. <br/><br/>What about wachovia? They were probably within that 100 miles. Seems like the proverbial battle line has been brought back about 100 miles.

What about wachovia? They were probably within that 100 miles.

]]> By: macndub http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29.html#comment-15252 macndub Mon, 15 Sep 2008 02:34:00 +0000 http://www.nakedcapitalism.com/2008/09/bank-of-america-buys-merrill-for-29-a-share/#comment-15252 BofA is trying to become too big to fail.<br/><br/>Yves, what's your thinking of the likelihood of this deal completing? It's a $10 premium to Friday's close. Seems like it's designed to destroy the shorts, but if I were short, it would smack of desperation. If MER loses another $10, the deal will be repriced. BofA is trying to become too big to fail.

Yves, what’s your thinking of the likelihood of this deal completing? It’s a $10 premium to Friday’s close. Seems like it’s designed to destroy the shorts, but if I were short, it would smack of desperation. If MER loses another $10, the deal will be repriced.

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