The Banking and Strategy Initiative

Chillin' out till it needs to be funded

BofA gets rid of CCB stake for $7.4 bln

While the price is not clear, the release of $1.4 bln in Capital gains from a 4% sake sale this time around, adds to the $3.3 bln raised

A China Construction Bank branch on Minzhu Roa...

Image via Wikipedia

into Core Capital for the Bank in July for a total accretion of $4.7 bln from BofA’s stake in China Construction Bank. CCB, along with AgBank seems tobe surging ahead n rankings and business as per the latest results but while AgBank does not have any international exposure of note except the tranches in October, BOC and CCB have been invested in Europe and booking losses as they get rid of their Greek and now Italian and Spanish portfolio

BofA follows JP Morgan in the US banks most invested in Italy with BofA’s $5.4 bln European Exposure and J P Morgan’s $7.5 bln exposure both leaning into Italy where yields now ride at 6.3% after a successful 5 yr bond auction Litigation expenses that have been depleting BofA’s reserves continue to be the most important value blindsiding bank’s investors as the Bank continues to targe a $1.5 bln from Project New BAC this year and $1.2 bln next year

Information

This entry was posted on November 15, 2011 by in Banking, Financial Services, Obamanomics, US and tagged , , .

Archives

%d bloggers like this: