Bank of America Sells Shares Under Value

[kornnut]

BofA prices offering for bailout payback

Bailed out bank announces an offering price of $15 a share in order to pay back the government.


By Hibah Yousuf, CNNMoney.com staff reporter
Last Updated: December 3, 2009: 7:56 PM ET

NEW YORK (CNNMoney.com) -- Bank of America said it has priced its stock offering which it plans to use to pay back the government's bailout money.
The offering of "common equivalent securities" is priced at $15 a share, almost 5% below where the company's shares closed on the NYSE Thursday.
Shares of the bank ended at $15.76, and then fell 1.65% to $15.50 in after-hours trading.
The offering is expected to generate $19.29 billion, 2.6% more than the original $18.8 billion Bank of America (BAC, Fortune 500) originally announced it would try to sell in securities in order to pay back the $45 billion it received in bailout money over the past year. more




Look at this! When pressed Bank of America can liquidate assets and generate revenue. Guess they didn't need the bail-out after all. This not only increase revenue for the bank but increases stock activity. I wonder if we would have left them to sink or swim how many of these banks would have come up with creative ways to stay afloat. They could have started with this line of thinking and exhausting all options...

[Travelinman52]

They need a new CEO and they can't get a decent one as long as Uncle Sam is setting the pay.

[jpeckergnat]

They need a new CEO and they can't get a decent one as long as Uncle Sam is setting the pay.

An adequate person can be hired to run Bank of America, even with the pay restrictions. I believe the board of the bank is so self-centered that they would rather give away the stockholder's money than pay themselves less.

[Travelinman52]

I believe they thought they were going to get a bunch of money without the strings that came with it. Now they don't like the controls being in someone else's hands.

[Venkman]

Might not be a bad idea to buy up some of this stock. Might be a good chance worth taking.

[Travelinman52]

Might not be a bad idea to buy up some of this stock. Might be a good chance worth taking.

I can't disagree with that. After all they are "too big to fail ".

[kornnut]

I can't disagree with that. After all they are "too big to fail ".

That's right.. Tax payers will subsidize them regardless of how poorly they manage their business.