re: Blodget vs Bank of America
- Joshua M Brown
- August 23rd, 2011
So this happened today while you East Coast fairies were flipping out over a 20 second earthquake…
BANK OF AMERICA STATEMENT REGARDING HENRY BLODGET
2011-08-23 16:29:04.675 GMT
(The following is a reformatted version of a statement from Larry DiRita, a Bank of America spokesman. The statement was confirmed by the sender.)
Mr. Blodgett is making “exaggerated and unwarranted claims” which is what the SEC stated publicly when he was permanently banned from the securities industry in 2003. The sovereign exposure is off by a factor of 10. The commercial real estate figures are off by a factor of four. The mortgage analysis was provided by a hedge fund that has acknowledged it will benefit if our stock price declines. The recommendations on goodwill accounting would be prohibited by generally acceptable accounting practices. Traditional bank valuation relies upon tangible book value per share, which excludes by definition 100 percent of goodwill and other intangibles. As of June 30, our tangible book value per share was $12.65.
There’s really no need to add anything on here but I will sum it up for you. Bank of America ($BAC), with its trillion dollar balance sheet and skyrocketing CDS, is not only reading the Business Insider while Rome burns, they are actually responding to it. Did they see what Dilbert said about them the other day? And that joke on Letterman the other night? Where are the responses? This is Investor Relations on acid.
I can’t even…
also, the whole internet, just Google it
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The Reformed Broker is a blog about financial markets and the economy. Joshua Brown is a New York City-based investment advisor for high net worth individuals, charitable foundations, retirement plans and corporations... More.