A year ago,USA’s biggest bank ,Bank of America quoted at US $ 43.Yesterday is sank below US $ 4 and recovered to close at US $4.84…down 66 % in January alone this year
Market Cap has sunk below US $ 31 Billion…Bloomberg puts it rather tongue in cheek…One share of Bank of America will not even buy you a Big Mac in New York City.The Big Mac Meal costs US $ 6.59 at McDonald’s in midtown Manhattan
Bank of America received a US $ 45 Billion bailout package from the US Government late in 2008….It awaits and expects more
But what has it done with this US $ 45 Billion !?…Let’s see
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It Invested US $ 15 billion to double it’s stake in state owned China Construction Bank
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For Assets of just US $ 100 million it paid US $ 2.5 billion to Countrywide
It’s buyout of Merill Lynch is already turning bad
Like Citigroup,Bank of America could also be on it’s way to be broken up to split it’s US $ 1.8 Trillion Assets and 243000 Employees
A Sinking Share Price indicates clearly something BIG IS WRONG WITH BANK OF AMERICA….It appears that Federal Investigators are currently all over the Bank of America confronting it’s CEO,Kenneth Lewis with chilling evidence of huge mismatch between assets and liabilities and a severe Liquidity Problem that is threatening it’s solvency and survival
Isn’t BOA,a Constrictor !?…It seems the acronym,BOA is a Self Constrictor !