Comments on The Peridot Capitalist: BAC/CFC Baseball Analogy

Alex,I included the $2 billion they already invest...

2008-01-12T10:19:00.000-06:00

Alex,

I included the $2 billion they already invested in CFC's convertible preferred stock. The media has been wrongly reporting for a while now that BAC lost most of that investment because the preferred was convertible at $18 and now the stock is $6.

They ignore that BAC has the option to convert at $18 but doesn't have to (and they won't). However, while they are buying all the shares for ~$6, they also will not really get all of their $2 billion plus interest back, because when they own CFC they'll just be paying themselves the principal and interest out of their own pocket. Hence, in reality, their purchase price is more than $4.1 billion.

Just wanted to point out purchase price is 4.1 Bil...

2008-01-12T09:49:00.000-06:00

Just wanted to point out purchase price is 4.1 Billion,which would make the deal sweeter for BAC. :)

-Alex
http://www.lacontra.net

"Countrywide earned between $2.2 billion and $2.7 ...

2008-01-11T17:21:00.000-06:00

"Countrywide earned between $2.2 billion and $2.7 billion in profit every year between 2003 and 2006."

And I hear the Stankees need pitching! Why not sign Gibson, Koufax and Seaver? They all used to be 20 winners!

"home run" yea, then we can do this all over again...

2008-01-11T16:16:00.000-06:00

"home run"

yea, then we can do this all over again. Maybe the next liquidity crisis will be more like the panic of 1907. Glass-Steagal had a purpose.