Monday, July 20, 2009

Enjoy The 2nd Qtr Profits BAC

It increasingly looks like the 2ND quarter profits for BAC will be the last profits that the bank will book for the next year.

The normalized earnings picture just got more fuzzy after BAC reported earnings, mostly from asset sales and Non-Agency MBS write ups.

BAC caught 2 downgrades this morning on continued credit problems.

The financial sector is increasingly seeing money flow to banks that have paid back TARP and have a grasp of credit losses, both of which BAC is a long way from.

People are freaked out over credit card delinquencies, but the real losses are going to be in BAC's HELOC and Commercial Real Estate portfolio.

There really is no reason to own BAC, other then the Government implicit and explicit back stopping of their losses.

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