I would like to remind investors out there buying stocks because they are cheap...AIG was an absolute bargain at 20. I wonder if treasury secretary Geithner has something up his sleeve for Bank of America though. Our former secretary Paulson just about twisted BAC's arm to buy Merrill Lynch. I mean, who in their right mind (not BAC CEO Ken Lewis) would want to offer to buy a company in such bad shape, that the buyer becomes insolvent. Ken Lewis! Over here! That hippo is drowning in a bottomless pit of quicksand, quick, here is a life jacket, go save it!...
That said, there are some whisperings of some stimulis news coming in the next week that would help banks not have to mark to market so much. This could spur lending as banks won't be stuck with loans 75 cents on the dollar as soon as they extend credit. BAC traded almost 750 million shares today and corporate insiders bought substantial holdings as well. I think with that info, plus the fact that the feds owe Bank of America a solid makes me long BAC for a quick swing trade.
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