Chillin' out till it needs to be funded
Even as Apollo Corp picked up the Irish and Spanish credit card portfolios of Bank of America this week for EUR 1.3 bln in receivables and loans ata fair rate, $19 bln in loans in the UK were sold of fearlier in the yeara fter a long gap shopping fo rbuyers since announcing the TD sale in Canada for $9 bln in assets. The question being asked already is whether the bank will be able to hold on to its promise of not diluting its stake further when many investors will be hoping that it builds up credit reserves and asset sales though making an important dent have most passed the hill where they could contribute additional capital with $50 bln in asset sales in 2010 and 2011
The news of an impending capital offering however gives it a reason to fall below the recent Mt. $10 a seven month peak for the stock. Warren Buffet’s preference placement for example is already committed at $7.14 a nd is a large supply of additional stock and the stock wcould not hope to do much better from here is raising capital is a requirement for the bank on its large RWA balance sheet with its fortunes linked to its performance in commercial banking and the attendant stop again, start again housing recovery.
The bank has been selling buildings within the US this year including 222 Broadway, three buildings in Charlotte, and the Atlanta tower it acquired from various mergers. It keeps HQs at Trade and Tyron in Charlotte
It’s head of European operations Andrea Orcel is moving as Co Head of Investment Banking at UBS in the city and another Head of Europe Jon Moulds retiring. Christian Meissner is left holding the reins outside USA for the bank as of now. Asian investments outside Chinese banks were already sold to a Hedge fund and Alt Investments branched to standalone PE funds like North Cove.