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Goldman Cuts Bank of America Price Target From $19 To $16 Even As It Continues Understating Putback Problems
Goldman's Richard Ramsden has released another report whose only purpose is to prove that the market is wrong and that banks are angles, that putbacks already priced in by the market for the TBTFs are far greater than even the worst downside case, that business models are "robust", that Basel concerns are overrated, and more such things which, of course, are a self referential plea not to sell Goldman.... Oh yes, and despite all this he cuts the price target for WFC, PNC and, oops, Bank of America, from $19 to $16/share. If Goldman cuts Price Targets when all it sees are pots of gold and unicorns, one dreads to think what may happen if the bank was actually concerned about the fraudclosure situation that according to some rumors has brutalized the banks' October (and now November) mortgage-related cashflow.
A summary of Goldman's revisions, which include the drop in the BAC PT from $19 to $16.
And some multiple tables:
Also, we just love the "special disclosure" in the Ramsden report:
A household member of one of the analysts on the coverage team is employed by Bank of America Corporation (BAC), and has received equity-based compensation in the form of Bank of America common stock. The analyst is deemed to be a beneficial owner of those shares.
Full report for those who are concerned that Paulson's BAC PT of $30 by the end of 2011 may just not be reached.
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next up: BofA analyst Moszkowski lowers GS to Hold. Price target reduced from 182 to 82
All that matters is maintaining plausible deniability until the $144B in bonuses has been paid: "We sincerely believe that loss provisioning is adequate."
Next year: "Oops, most unfortunate that we just didn't see it coming, in spite of our best efforts."
Ah, yes, those angular banks, they get you every time...
(Sorrry Tyler, couldn't resist it, I know you know how to spell angles, ermm...!)
DavidC
...beat me to it...
Oh by the way, in my case the court granted a TRO enjoining BOA from a foreclosure sale. Rejected BOA's arguments that it should be permitted to proceed.
I raised the issue that if indeed the loan had been securitized and bank of new york mellon was trustee, then the attorney had a conflict of interest representing both BONY trustee and BOA where BOA is obligated to buy back the loan from the BONY trustee.
$660k owed. House worth maybe $400k arms length, $300 distressed sale now. I asked the bank to knock the balance down to FMV and I would resume payments. Bank declined. The easier thing would be to hand the keys to the bank and go buy a better house for $300k. Heading into winter, without someone living in it to maintain it through a Utah winter, this house will be destroyed by nature. Rational thinking is not at play here.
Nov. 3 (Bloomberg) -- Zero Hedge today increased its price target on the S&P 500 from 450 to 700. No reason was given other than "the call is not working".
analyze this.
not. very. pretty.
http://stockcharts.com/h-sc/ui?s=BAC
BAC RULES BITCHEZ!!!!
BAC of course UP today, 'bout 1%
The big lie is the idea the putback costs will be spread over years as they only come to light as the defaulted mortgages enter the foreclosure process. Once the trustees are put on notice, the clock starts ticking and they have to remove non-conforming mortgages or risk an event of default... anyway, it's all about buying time...
Exactly. And is it any surprise that they're all toeing the same line on this one? Nobody had to send anybody the memo to set this thing in motion.
They all want that bonus. They have no loyalty to their companies, their shareholders or the taxpayers they plan to stick with the bill.
The funniest part is the expected increase in annual earnings!
Reserve Releases as far as the eye can see....
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