This is where shit gets real.
The low print today on Dow Component and foreclosing-on-old-ladies-while-not-reporting-mark-to-market financials-specialist Bank of America ($BAC) is a staggering 4.94 for the day.
The market is getting rocked as the stock is not showing any signs of life here whatsoever. I’m sitting on my hands having lightened up equity portfolios on the heels of the October-November whipsaw. I have no idea which direction the next 5% comes from, but I know I don’t want to risk anything additional to attain it.
If you’re a $BAC shareholder and were totally cool with the suspension of m2m accounting standards via the amendment to FASB 107, then you’re basically getting just what you asked for – a poorly-managed, oversized, nightmare bank, the most-hated name in the most-hated sector with the most opaque balance sheet. I hope it recovers if only so we don’t have to bail it out a second time. They’ve had three bonus-swilling years to get the house back in order, an endless amount of support via lax accounting requirements and zero percent interest rates that act as a tax on retirees.
If they save these SOBs again I will personally throw the first trashcan through the first plate glass window like Mookie in Do The Right Thing.