It’s a Pretty Good Act, (It is an Act, Right)
America, the , N.C. based huge financial institution has not had a good couple of years. Their purchase of Merrill Lynch has gone well, but there was real disaster was the acquisition of Countrywide Mortgage Company. This acquisition will end up costing BofA tens of billions of dollars in losses and settlements for fraudulent lending practices. Charlotte
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At 1-15 Last Year They Still Had a Better Season
Than Bank of America
Asked why executives had not been buying more stock in BofA, he said they would be doing so when permitted and after the recent period of “volatility
Mr. Moynihan did not say who was not permitting him to buy, but it is strongly suspected to be his wife, children and all other actual and potential heirs.
“My performance with the management team ... has been strong,” he told investors on a conference call on Wednesday, even as he acknowledged that the group’s share performance had “not been strong”.
The CEO has decided not to participate in the Era of Personal Responsibility. He did not explain how his “strong” performance led to a large decline in the stock price.
The bank has one of the weakest capital levels among the biggest
banks but Mr Moynihan said: “We simply could not continue on a course of diluting our shareholders to raise capital.” US
Translation: Selling more shares to shore up our capital base would reduce the price of the stock. We can reduce the price of the stock even more by just continuing what we are doing now.
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of BofA Management?
The bank was humiliated this year when a promise to investors to increase their returns was vetoed by the Federal Reserve. “We will ask for a dividend when we’re darn well sure that we’ll get approval and not a minute before,”
Apparently Mr. Moynihan did not attend Finance 101 class the day they taught that paying a dividend decreased capital, and was probably not the thing to do when you needed to increase capital. It’s okay though, it was an excused absence.
Another example of “strong” managerial performance by the senior management team.
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