Following Wikileaks Revelations, The Tricky Dick Rushes To The Rescue, Sees Bank of America Worth $21 In Bankruptcy

Tyler Durden's picture

This is certifiably one of those days when the insanity refuses to end. The latest laugh out loud episode come from the lunatic who has outstayed his "analytic" welcome by about 2 years following his Buy recommendation on a soon to be bankrupt Lehman Brothers (sorry Dick, nobody will ever let it go): The Rochdale analyst, continues to reprise the role of the evil grandpa-in-law who just. refuses. to. leave. even though it is about 12 hours past his credibility-time, now sees Bank of America as worth $21 in bankruptcy. You really can't make this shit up. To wit: from a very funny Dick: "In death, this company would be worth 91% more than it is worth in life." You may laugh now.

From Tricky Dick Bove: Bank of America (BAC) - Let’s Get Real

  • It has been reported that Wikileaks has obtained the hard drive of a Bank of America executive. This hard drive is believed to have 5 gigabytes of data on it. Consequently, it may take until the beginning of next year for Wikileaks to sort out the information and select what it wants to reveal. The organization is striving to make the biggest impact by touching upon data that is relevant in today’s marketplace.
  • It is further believed that this may narrow the data down to either the Merrill Lynch acquisition or Countrywide’s lending policies. It may be that the executive indicated that Bank of America was fully aware of all the write-offs and bonuses at Merrill well before this information was made available to shareholders.
  • Or, the data may deal with Countrywide’s underwriting policies and some type of collusion between the bank and Countrywide related to the issuance of securities. Possibly, the “friends of Angelo” may be revealed including Senator Dodd’s relationship with the company.
  • Wikileaks may not even know at this moment what it is going to reveal. The only issue one can be sure of is that whatever the data it will be sensational.
  • However, will it be relevant? Bank of America has already paid fines related to the events surrounding its acquisition of Merrill Lynch and no further government action is contemplated.
  • The Countrywide underwriting policies and Bank of America’s collusion or non-collusion is now in the courts and there are multiple lawsuits still being prepared relative to this issue. These court battles still come down to a mortgage by mortgage review to determine if fraud was involved.

Thus, it is hard to conceive that the information will be new or that it is not been dealt with by the system already. Yet, the price of Bank of America’s stock continues to fall.


So, let’s surmise what would happen if Bank of America failed. First, all of the lawsuits against the company would go away. Second, the liabilities would be paid off from existing assets over a long period of time leaving the company’s net worth for shareholders.
This net worth is now $212 billion. Looking at the bank’s stated assets it has $150 billion in cash and $322 billion in securities that are mainly government guaranteed. Thus, the cash per share that would be available to shareholders on declaring bankruptcy would be approximately $15 per share. The stock currently sells at $11 per share.

Returning to the securities portfolio, there is $53 billion in Treasuries held outright and $200 billion in government backed agencies or agency backed securities. There is another net $32 billion in government backed securities in the trading portfolio.

While there is a great deal of argument as to the value of the bank’s assets it should be noted that at the moment the company’s free cash flow annualized is $40 billion. The fact that the company is in a cash throw-off position indicates that its assets are not being overstated and that in bankruptcy there would be no pressured sales of loans or securities.

Plus, the value of the company’s processing and other non-cash intensive businesses is close to zero. Yet if they were sold they would command prices in the billions. What this all means is that Bank of America’s book value is a valid number. It is worth at least $21 per share. In death, this company would be worth 91% more than it is worth in life.

Operating Basis

The fact is that Bank of America will not enter bankruptcy. Instead it will deal with the Countrywide lawsuits over an extended period of time. My estimate is that they will cost the company $20 billion over five years. The company’s estimate is that they will cost $3 to $13 billion. The courts will decide. Any statement from any executive may be part of the lawsuit but it still comes down to proving that this company did something fraudulently mortgage by mortgage.


This stock is considerably undervalued. It continues to be driven by sentiment and not hard numbers. When this changes, and it will change, the issue will rise rapidly in price.

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Fish Gone Bad's picture

buy buy buy!

Uh oh, you just said a Bove!

Careless Whisper's picture

stop pickin' on the guy, he obviously forgot to take his meds today.

MarketTruth's picture

He and Cramer need their 'meds'.. and remember Cramer with his Bear Sterns call.

let x equal x's picture

Dick Bloviate sez buy Bear Stearns.

Cognitive Dissonance's picture

This stock is considerably undervalued. It continues to be driven by sentiment and not hard numbers. When this changes, and it will change, the issue will rise rapidly in price.

So if I read this correctly, based upon Dick, BAC is about to get a boner.

carbonmutant's picture

I love your penetrating commentary...

Julia's picture

I know a big man from a small man. Dick Bove is a very, very small man. And he is not even tricky because not trick would have him. Now, Julian Assange--he's a big man.

That said from the heart of a Colombian woman with great cleavage, the words of Dick Bove that Citi was a buy of a lifetime at $20 shows you his size. He is a small man. And anything he has said since is that of what all small men say--Napoleanic sillyness--however you say in America.

phat tails's picture

I thought that was Doogie Howser, where's Vinnie? Oh, okay that's Julian;)

Julia's picture

Time to get out the Rabbit.

fredquimby's picture

Awesome site whare you can just upload your pic and print it onto any shirt!!



cossack55's picture

I assume when you mention big/small, you are referring to size of brain?

Julia's picture

Never assume anything.

Lets Hang Parliament's picture

"And anything he has said since is that of what all small men say"

Big man big cock

Little man all cock

spinone's picture

Can I have your number?

woolly mammoth's picture

William, that is laughingly gross. Bet Dick gets tired of finding this image in his in box over the next few days,

phat tails's picture

I'll bet Bawney Fwank pays a pwemium pwice fowr his head cheese!

Al Gorerhythm's picture

What are the odds of being gay, working for government and having a speech impediment?

I need more cowbell's picture

Having a mouthful of cum is not a speech impediment

bob_dabolina's picture

The price of the stock has been falling since mid April. That is the last 7 months.

Is he trying to say the collapsing stock price of BAC is from a statement made yesterday about an unnamed bank?

And BAC assets are marked-to-myth. I don't think it can get 100 cents on the dollar for many of it's assets if sold on the open market as they are only worth what someone is willing to purchase them for.

Julia's picture

Dear Bob,

In your 30 weeks here you have learned not so much since you state the obvious. You see, Dickie Bove--he is a legend in his own mind and a bovine signal flasher--when he sees value, he's not shopping with me at Tiffany's, he's at the dollar store. Dickie is a man of many myths in the world of those who guess at valuation. You see, he knew Hamburger Berman was worth $12 Billion alone in early September of 2008 before Lehman was smushed like an overcooked yam, Citi was such a bargain at $20 that when it went to $1 he just dropped the 0 from the 20 and only lost 50%--so, you must see the truth that BAC is worth at least $21 to this pigman that always gets his numbers confused and even goes on the television to embarrass himself. Bad breeding (see below) in the Bovine family.

This means BAC could go to $1 or less just like the amount Vikrim Panda tips my Colombian girlfriends these days. I do not know him personally since he is also a small man.

Sadly, my former lover John Paulson is now a very limp man. Viagra, Vergara--not satisfying. Since he told me his Dick Bove stock was tanking he has been very boring. He has this thing he calls the GLD and tells me it is worth a sooo much. He says it is like gold. My jewelry is gold--22K--and it is shiny and beautiful. When I ask him how gold can be paper, he says it is the same thing. Well, I may be a hot blooded Colombian woman but I know when a bull is shitting. I'm not wearing any paper jewelry anytime soon. And when the jewelry stops, well, let's just say he gets no more weeklyleaks.

I so love the internet and this wonderful I have learned so much about Mr. Bove. His father was a very large pig but his mother was a javelina(a wild and sexy southwest US and south of the border pig). The combination was not good for anyone that knows these species, according to Far more unfortunate, he is dyslexic with numbers since he has no understanding of decimals. This is what happens when a large pig and a female havelina mate. Are you related to him with your name Dabolina? I encourage you to go to the website and find out.

So when the real number is $2.1 in TBTF pig language, since he only sees the 2 and the 1, thus you have the king of the bad call, unless you sell unlimited uncovered calls at $21, which won't get you much but with say 100000 contracts, you could buy a round trip ticket to my native Colombia and perhaps a wife.

goldsaver's picture

Ha! Your supposed linguistic errors are too delicious! You naughty, naughty girl!

ZackAttack's picture

+1000 internets. Awesome bit of satire.

Miles Kendig's picture

Best chocolate with our morning coffee in some time says Tooley & Agusta.  Likes the directions to the seconds rooms you're herdings' we dos'.  Such a sweet punch you donate you Rollacoasta luvaa you.  ;)  Now we get to see IF Bobby can dance as white as Robin since there is little doubt remaining as to his abilities to sing black like the coffee & chocolate we all love so much


Tschussss Dulzura

mauistroker's picture

Interpol are after Julian for fucking Dick

Problem Is's picture

Hey Dickweed Bove -- 91% of Zero is Zero...

Hit it Billy:

"Nothin' from nothin' leaves nothin'..." bitchez...

Kyron95131's picture

i think the bigger picture here from what im seeing is that now since wikileaks has turns its gaze upon the banks, American media outlets have come to life

ive seen more articles today revolving around bank volatility and wikileaks than ive seen in collective articles of various topics in the last week.

Cone of Uncertainty's picture

Wow, this is a new level of complete unabashed douchtardness of the highest order.

hedgeless_horseman's picture

This is your cue, Jim Cramer, you are on in five!

Nolsgrad's picture

but, your money was fine, it's the stock that wasn't. 

goldmiddelfinger's picture

Hilarious and at $62,

This after Tiger Wood's financial "mentor" the hedge fund "genius", Joseph C. Lewis, "snapping up about $860 million worth of the investment bank's stock over the past two months"-an average price ABOVE $100!


monopoly's picture

This is just beyond words. How idiotic have these dead fish become in their ramblings of crap to crap. Did anyone mention the 2nd home equity loans, that are off BACs balance sheet thanks to our fraudulent govt.

And looking for the sweet spot to short GM.

goldsaver's picture

Here is hoping it is BAC. That bank evil is only second to JPM and GS. Of course, no one will be prosecuted and those who loose their jobs will go away millionaires.

Sorta OT- Anyone notice that Asange was in the clear (more or less) with a damocles sword over his head until he threatened a bank? Then 24 hours later Interpol decides to issue an arrest warrant? Two possible outcomes. If he is arrested and released before he releases the BAC documents it means he worked out a deal. He will let BAC execs redact the documents before release in exchange of a not guilty verdict. If he is not released and leaks out the documentation, he will die from a strange case of lead poisoning before getting to trial.

Dixie Normous's picture

I would only add that this guy has to know he could "lose his brakes" or develope a fatal headache at any given moment, so i would assume he arranged for a shit storm of everything to be released immediately upon his demise.

I would also hope that if he has the balls to start this thing, knowing the fatal risks, then he would be willing make everything public without compromise.

goldmiddelfinger's picture

you don't care about him and neither does Hillary

Al Gorerhythm's picture

I'll wager that the squid is writing insurance policies on Julian, leveraged 70x.

goldsaver's picture

Sure, that is the intent. But there are things much worst than death for Asange. They can promise him a rendition to Siberia under Pooty-Poo's supervision if he releases unredacted. Or a little stint (20 years) in a Syrian prison for screwing with OPEC's cash cow (the US). Oh, yes. There are many things worst than death he can be offered.

Al Gorerhythm's picture

Like a week with the Clintons?

Trenchf00t's picture

Julian will not be touched. He is likely an [unwitting] essential part of the info laundry operations of various intelligence agencies. When you see the "leak" next year of shit you already knew about XYZ Bank, see if you can identify what the creator of the info seems to *want* you to know. What is telling about WL is that so little of the "info" that comes from there is actionable intelligence. People accept it as gospel, call the guy a hero, and compare their product to the Pentagon Papers, a *real* leak from *real* heroes that was actionable, containing shit that nobody knew about. Those guys were tried for espionage. Assange is not some sort of uncatchable Frank Abagnale type. He is roaming about, giving his interviews full of deceptive body language to any dickhole with a mic. If there are nice, wide spreads on him not getting whacked, please tell me where I can get in on the action, because I don't see why anybody would whack him -- even the occasional disinfo target. My $.02.

chunkylover42's picture

I have a hunch (completely talking out my ass here) that JPM is the target.  No idea why, but it would pretty awesome to see the Death Star go down.

Founders Keeper's picture

[Anyone notice that Asange was in the clear (more or less) with a damocles sword over his head until he threatened a bank?]---goldsaver

Yes.  It did look like Asange was in the clear.  Then, all of a sudden, trouble, criminal charges, etc.

This guy is hiding more dirt than a dropped diaper at the county fair.


Convolved Man's picture

Lost a 5Gb drive???

After all the time and effort spent redacting BAC from the Fed's bailout documents to be released tomorrow?

agrotera's picture


I  guess BAC @$21/share in bankruptcy all depends on who the buyer is--naturally, some someone has to buy the MER arm for nothing since blood was already extracted by the bankrupt MER getting 0.66% of a BAC share for each bankrupt share--gee i guess that means that the MER division would be worth $13.86/share in bankruptcy---

speaking of the BAC verses the LEH deal--Barclays gets LEH for NOTHING, yet MER gets 0.66BAC share for every MER share for a bankrupt company--guess we'll have to call in Hank to help architect the deals.