Bank of America Selloff Accelerating On Heavy Volume
There is no joy in the top floor of 1251 Avenue of the Americas, where the P&L associated with a once mega profitable BAC position has dwindled to nothing. Following our earlier assessment that Bank of America reported yet another miserable quarter, the market has also caught on with the pure ugliness oozing form this report, and has punished the stock by sending it to multi year lows, at last check tumbling to $9.45 on heavy volume. There are still about 30 cents left until Paulson is completely underwater based on his cost basis. Which of course is completely irrelevant in the hedge fund world where only day to day P&L is relevant.
As a reminder, here is what the thinking was many moons ago, in November 2009, courtesy of the infamous Paulson letter:
Yeah, that didn't work out quite as expected...
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