Forum Post: Bank Of America Desperately Does Not Need The Cash...But Will Take It; Sells Remainder Of China Construction Bank Stake
Posted 13 years ago on Nov. 14, 2011, 8:14 a.m. EST by MonetizingDiscontent
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Bank Of America Desperately Does Not Need The Cash...But Will Take It; Sells Remainder Of China Construction Bank Stake
(TylerDurden of zerohedge) The bank that never, ever needs capital, but will dilute the living daylight out of anyone to get it, and will sell all its actually valuable assets as soon as possible, has just gone ahead and proved all its critics right yet again. Several minutes ago Brian Moynihan's rotting carcass of toxic Countrwide Financial mortgages, which has some negligible banking businesses on the side, just announced it would sell about 10.4 billion common shares of China Construction Bank Corp through private transactions with a group of investors. The purposes of the follow up CCB disposition - to pump about $2.9 billion in additional Tier 1 common capital at Bank of America. And with this the easy disposition targets are gone.
Next up: just how will Bank of America be able to spin off Merrill. Have fun with all those CDS successor issues. And once that phase is over, the debate over just how Bank of America will spin the hundreds of billions of legacy CFC contingency liabilities off into an "asbestos" trust will resume.
last I heard regulators were not going to approve the meryll CDS move into BAC... so who knows how they are going to deal with ML...