Forum Post: Bank Of America Posts Two $100MM+ Losses In Past Quarter
Posted 12 years ago on Nov. 3, 2011, 6:03 p.m. EST by MonetizingDiscontent
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Bank Of America Posts Two $100MM+ Losses In Past Quarter
http://www.zerohedge.com/news/bank-america-posts-two-100mm-losses-past-quarter
Remember when even the worst of all trading desks on Wall Street, that of Bank of America could do no wrong and disclosed a trading quarter of pure perfection? Yeah, that's over.
The bank, which just jolted shareholders with news of material common dilution, in the form of $2.5 billion in new equity capital to be raised, has released its trading days data for Q3.
Per the 10-Q: "During the three months ended September 30, 2011, positive trading-related revenue was recorded for 69 percent (44 days) of the trading days of which 47 percent (30 days) were daily trading gains of over $25 million, nine percent (six days) of the trading days had losses greater than $25 million, three percent (two days) of trading days had losses greater than $100 million and the largest loss was $119 million."
On the flip side, BAC had not one $100MM+ trading win. In other words, BAC posted losses on a whopping 31% of the trading days (compared to 0% two quarters ago), something that indicates a very violent return to normalcy: after all if banks, with ZIRP, legal frontrunning, profit from default risk surges, and POMO are unable to make money 100% of the time, who else, besides all the day traders on twitter and the fine men and women on Fast Money of course, will post flawless trading records in the future?
Continue Reading this article at:
http://www.zerohedge.com/news/bank-america-posts-two-100mm-losses-past-quarter
and if they were investigated im sure they would be proven to be liars
Not sure what you are trying to say. If yo do the math for the 3rd quarter, at the worst case scenario based off of the graph included in that article they made at least $800 million. Had a couple bad days.
Issuing shares to raise cash to buy back junior debt that you previously booked as a gain? Sounds sort of like debt restructuring to me. A failed business model continues to fail. What a surprise!!
Did we ever find out how everyone was having perfect trading quarters?
Didn't comment on whether it was right or wrong or how they did it. The article seems to make a big deal over them losing $200 million in a couple days of trading but overall they made almost a billion.
Sorry Jimboiam, some background might help.
Bank Of America Common Dilution Coming: To Issue 400 Million New Shares
http://www.zerohedge.com/news/bank-america-common-dilution-coming-issue-400-million-new-shares
I thought they didn't need any more funds. "we have a strong balance sheet" "we are well positioned for long term growth".
So, there is no liquidity problem...BUT...uncle warrens 5 billion dollar hardon was not big enough. hmm