![bac How Stressed is B. of A. ?](https://www.upsidetrader.com/wp-content/uploads/bac-300x198.png)
Yahoo Finance reports that BAC has a market capitalization of $69 billion, last night the Treasury reported that the bank will need an additional $35 billion. It looks to me that the stock is down about a buck, which is nothing in my book after such a dramatic announcement.
BAC, WFC and PNC were three banks that were the “go to” guys for the Treasury when Rome was burning. BAC bought Merrill at gunpoint, WFC bought Wachovia and PNC bought National City. All of these banks will need capital. It really does pay to play ball with the government doesn’t it? At the end of the day big government usually chews you up and spits you out, this saga is still in motion, it will be interesting to see where it all lands.
My advice to those that are long financials? Get out while you have the chance. Not because of the BAC news, that doesn’t help, but because their entire business model has vaporized, of course if paralyzing dilution is your thing, then start taking out offers. Careful out there.