Yesterday, while sitting comfortably in my living room, sipping a generous dram or two of 16-year Lagavulin (an Islay single malt scotch to the downtrodden who abstain from such pleasures), which I recently discovered and now think about constantly, I had the TV blaring subtly in the background; unfortunately it was tuned to CNBC. And of course, always looking for software to fill the void, another banking analyst was trotted out of the stable to share his view on Bank of America. The bottom line was that he believed that Bank of America's dumping of half its stake in China Construction bank, raising a cool $8.3 billion and pocketing an estimated profit of $3.3 billion on the sale, was a sign of desperation. I wish I could discover some desperate profit with that many zeroes behind it!
It was pure desperation on Bank of America's part, what else could it be? Well, it could be lots of things. As I went back to enjoying my new discovery, I thought to myself: Did this analyst ever consider that just maybe BOA executives know a bit more about Chinese "banking" than he does? Nah ... likely never crossed his mind; all he knew was this maneuver was oddly timed.