The business stories that matter, by Fortune's Colin Barr
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January 23, 2008, 3:01 pm

No petrodollars for Bank of America

Bank of America (BAC) is joining the fundraising circuit. The banking giant set plans Wednesday for a $6 billion preferred stock offering. The moves come just a day after Bank of America posted a 95 percent drop in fourth-quarter profit, led by a sharp rise in its provision for loan losses and a $5 billion writedown of mortgage-related debt. The quarter showed Bank of America, while clearly better-managed than some struggling peers such as Citi (C), won’t be immune to the recession threatening U.S. consumers.

But unlike rivals such as Merrill Lynch (MER) and Citi, which tapped investment funds in Asia and the Middle East to replenish billions of dollars of capital following hefty writedowns, Bank of America is raising its money right here. The bank even says it will apply to list its convertible preferred stock on the New York Stock Exchange. So far, the “Buy American” theme is working: Bank of America shares, though still below their level at the end of 2007, were up nearly 6 percent in afternoon trading Wednesday.

augusto-
how could i forget. you have been quite a fount of wisdom on the bac front. many thanks for your continued overseas typing and my regards to you and yours in buenos aires.

Posted By Colin Barr : January 23, 2008 4:21 pm

Hey Colin…!!! Remember me…?
I am the investor (BAC) that posted a coment regarding your past article of BAC dividens. Remember…?
Ok..If you remember -or search my comment- you can see…
- I made my advise and comment regarding a new deal with CFC was running….one day before than WSJ..!!
- In my post…I did recomend “strongly” to cover your short position in CFC y BAC if any.
- In other post in this web but with other journalis (around five days ago)… I posted…
-BAC will keep paying its normal dividend
- I gave to the readers a TIP… sale PUT $45 january 2010 (Two day ago $+14, today $11.!!) $3 bucks in 4 days …!!! is not good ?

Now my last tIP…
- BUY BAC Strongly…BAC will go all the way up to $50-55 as MINIMUN. With dividens of 2,56 a share by year the annual yield still will be fantastic…!!!
Just wait and see friend.
Best regards.

Posted By Augusto Geisel, Buenos Aires, Argentina : January 23, 2008 4:02 pm
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Colin Barr covers business and finance for Fortune.com. Previously he was an editor at TheStreet.com and author of the weekly Five Dumbest Things on Wall Street column, and an editor at Dow Jones Newswires.
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