Comments on: Bailout math, BAC edition http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/ A slice of lime in the soda Sat, 18 May 2013 04:10:35 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Leslie Luciani http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/comment-page-1/#comment-1613 Leslie Luciani Thu, 14 May 2009 14:21:19 +0000 http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/#comment-1613 How can you tell which issue of private preferred is likely to be converted? I own BMLPRL. Is it worth hanging onto? How can you tell which issue of private preferred is likely to be converted? I own BMLPRL. Is it worth hanging onto?

]]> By: David Dzidzikashvili http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/comment-page-1/#comment-1382 David Dzidzikashvili Thu, 07 May 2009 17:41:50 +0000 http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/#comment-1382 The problem is the government in this case, they put themselves in this scenario, they should have been able to acquire majority shares by now and restructure not only BoA, but all the other bailed out, failed financial institutions. Another source of the controversy could be the stress-tests, how they are being conducted and formulated and how to interpret results. The problem is the government in this case, they put themselves in this scenario, they should have been able to acquire majority shares by now and restructure not only BoA, but all the other bailed out, failed financial institutions. Another source of the controversy could be the stress-tests, how they are being conducted and formulated and how to interpret results.

]]> By: bruce fields http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/comment-page-1/#comment-1380 bruce fields Thu, 07 May 2009 17:28:58 +0000 http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/#comment-1380 see 2 posts up - if another, competitive blogger posted something so wrong Felix would be all over them (i.e dealbreaker) - wonder why he hasn't taken this down yet and saved embarassment? see 2 posts up – if another, competitive blogger posted something so wrong Felix would be all over them (i.e dealbreaker) – wonder why he hasn’t taken this down yet and saved embarassment?

]]> By: at http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/comment-page-1/#comment-1376 at Thu, 07 May 2009 16:38:59 +0000 http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/#comment-1376 well, obviously they dont want to and you saw this http://www.slate.com/id/2217811 well, obviously they dont want to

and you saw this http://www.slate.com/id/2217811

]]> By: bill http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/comment-page-1/#comment-1371 bill Thu, 07 May 2009 16:07:18 +0000 http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/#comment-1371 I am not surprised that Felix is disseminating inaccurate information, but doing it in a witty manner so I guess that's something. Govt set the price of conversion at $6 something back in early february. Therefore it makes no sense to convert govt preferred, but to make an offer to the private preferreds. Say something like offering to exchange their current preferreds for mandatory convertible preferred with a conversion price of say $20 a share. Most of the preferred shareholders would jump at an offer like that. I am not surprised that Felix is disseminating inaccurate information, but doing it in a witty manner so I guess that’s something.

Govt set the price of conversion at $6 something back in early february. Therefore it makes no sense to convert govt preferred, but to make an offer to the private preferreds. Say something like offering to exchange their current preferreds for mandatory convertible preferred with a conversion price of say $20 a share. Most of the preferred shareholders would jump at an offer like that.

]]> By: Murray http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/comment-page-1/#comment-1368 Murray Thu, 07 May 2009 15:49:23 +0000 http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/#comment-1368 If BofA is to convert prefs, surely it would ape Citi's humbling deal and do half in govt prefs and half in private? They have $33bn of private prefs, after all. If BofA is to convert prefs, surely it would ape Citi’s humbling deal and do half in govt prefs and half in private? They have $33bn of private prefs, after all.

]]> By: Ryan Freund http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/comment-page-1/#comment-1366 Ryan Freund Thu, 07 May 2009 15:24:01 +0000 http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/#comment-1366 Once they convert the entire $45 billion, which seems likely given the continued losses in CRE that are just beginning to surface, this will equate to more like 40% ownership, correct? Once they convert the entire $45 billion, which seems likely given the continued losses in CRE that are just beginning to surface, this will equate to more like 40% ownership, correct?

]]> By: Pietro http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/comment-page-1/#comment-1365 Pietro Thu, 07 May 2009 15:12:38 +0000 http://blogs.reuters.com/felix-salmon/2009/05/07/bailout-math-bac-edition/#comment-1365 What "luck" indeed. What “luck” indeed.

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