Friday, May 8, 2009

Bank of America likely will make it

Disclaimer:  I don't directly own Bank of America stock (BAC), but do have holdings in the ETF XLF which has BAC in it.

Click here for the AP article on Yahoo! Finance.  Looks like a combination of asset sales, conversion of preferred stock, and common stock issuance will prevent need to convert the Government program to common stock.

I suspect that bank stocks are all a lot higher today compared to when they received TARP money.  Remember that the government wants the price of the bank stocks to go up (do they have a conflict of interest?) because that means that their "investment" via the TARP funds will be worth more.

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