B of A forecasts additional $3b writeoff

Discussion in 'Wall St. News' started by a529612, Nov 13, 2007.

  1. Bowgett

    Bowgett

    Don't be so negative:


    BofA set to gain $30bn on CCB stake

    By David Wighton and Ben White in New York
    Tuesday Nov 13 2007 13:50
    Bank of America (NYSE:BAC) on Tuesday said it was sitting on a potential gain of more than $30bn on its investment in China Construction Bank, highlighting the paper profits some western banks have made on holdings in their Chinese counterparts.

    BofA paid $3bn two years ago for an 8.5 per cent stake in CCB and an option to increase to 19.9 per cent at a very low price. The bank plans to record a gain of about $16bn on its existing stake in the fourth quarter.

    "On paper we have a potential gain in excess of $30bn," said Joe Price, BofA's chief financial officer, adding that it would be able to cash in some of its holding over the next 2 to 3 years.


    http://us.ft.com/ftgateway/superpage.ft?news_id=fto111320071400453322&referrer_id=yahoofinance

     
  2. They better writedown that stake in CFC also.