Monday, October 06, 2008

BAC: Huge News all Piled Together

Finally, Relief for Homeowners: BofA Settles Predatory Lending Suit: Tech Ticker, Yahoo! Finance

1. Agrees to $8.6B predatory lending settlement
2. Announces earnings of $0.15 (68% below estimates)
3. Announces 50% cut in dividend
4. Will issue $10B in new common stock

I knew it was too ambitious to expect them to maintain the dividend.

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