http://ContrarianEdge.com/2008/01/12/bank-of-america-the-contrarian/ Fri, 29 Aug 2008 17:23:11 +0000 http://wordpress.org/?v=2.0.4 http://ContrarianEdge.com/2008/01/12/bank-of-america-the-contrarian/#comment-87522 Sun, 01 Jun 2008 17:01:54 +0000 http://ContrarianEdge.com/2008/01/12/bank-of-america-the-contrarian/#comment-87522 Regrettably, I own BAC at an avg of 46. CFC deal carries enormous potential legal liabilities--a potential politico-legal vendetta against the mortgage industry. Potential strategic reward is of the "last man left standing" makes a bundle long term, after running a potential legal-regulatory gauntlet. Ken Lewis can't possibly foresee how much risk he's running as the housing bust metastasizes and gets politicized. BAC buying CFC is like Rome conquering Palestine--be careful of what you wish for.... Regrettably, I own BAC at an avg of 46. CFC deal carries enormous potential legal liabilities–a potential politico-legal vendetta against the mortgage industry. Potential strategic reward is of the “last man left standing” makes a bundle long term, after running a potential legal-regulatory gauntlet. Ken Lewis can’t possibly foresee how much risk he’s running as the housing bust metastasizes and gets politicized. BAC buying CFC is like Rome conquering Palestine–be careful of what you wish for….

]]> http://ContrarianEdge.com/2008/01/12/bank-of-america-the-contrarian/#comment-47865 Sat, 12 Jan 2008 18:03:45 +0000 http://ContrarianEdge.com/2008/01/12/bank-of-america-the-contrarian/#comment-47865 Even if BAC loses money on the deal, it's a strategic move. While us traders think about picking tops and bottoms, Ken Lewis runs a business, and is always trying to figure out how he can expand his empire... er... bank. He's done big deals while things were booming, and he'll continue to do big deals while things are going to hell in a handbasket. Most importantly, he will face no real regulatory concern about bailing out CFC (the same could not be said during boom times). Even if BAC loses money on the deal, it’s a strategic move. While us traders think about picking tops and bottoms, Ken Lewis runs a business, and is always trying to figure out how he can expand his empire… er… bank. He’s done big deals while things were booming, and he’ll continue to do big deals while things are going to hell in a handbasket. Most importantly, he will face no real regulatory concern about bailing out CFC (the same could not be said during boom times).

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