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View Diary: CRACK!: Bank of America Downgraded (234 comments)

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  •  Absorbed (0+ / 0-)

    It will be absorbed or purchased by another bank before it is totally delisted.  Probably with some kind of guarantee from good old Uncle Sam.  There is too much business there for it completely fail.  That said, it could go into bankruptcy making the stock worthless no matter the trade value.  Doubt Buffett would let that happen.  My bet is on a sale.

    Meet me in Cognito, baby

    by out grrl on Fri Oct 14, 2011 at 04:03:24 PM PDT

    [ Parent ]

    •  Plus, if Buffett bought preferred ... (1+ / 0-)
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      ... then in a bankruptcy, preferred stockholders' rights come before common stockholders' rights.

      One outcome might be that the company will begin selling off parts of itself; and Buffet's substantial position in preferred stock may be his leverage in getting some of those assets.

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