Bank Of America Posts Two $100MM+ Losses In Past Quarter - News and Current Events | futures io social day trading
futures io futures trading


Bank Of America Posts Two $100MM+ Losses In Past Quarter
Updated: Views / Replies:266 / 0
Created: by Quick Summary Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Bank Of America Posts Two $100MM+ Losses In Past Quarter

  #1 (permalink)
Quick Summary
Bank Of America Posts Two $100MM+ Losses In Past Quarter

Remember when even the worst of all trading desks on Wall Street, that of Bank of America could do no wrong and disclosed a trading quarter of pure perfection? Yeah, that's over. The bank, which just jolted shareholders with news of material common dilution, in the form of $2.5 billion in new equity capital to be raised, has released its trading days data for Q3. Per the 10-Q: "During the three months ended September 30, 2011, positive trading-related revenue was recorded for 69 percent (44 days) of the trading days of which 47 percent (30 days) were daily trading gains of over $25 million, nine percent (six days) of the trading days had losses greater than $25 million, three percent (two days) of trading days had losses greater than $100 million and the largest loss was $119 million." On the flip side, BAC had not one $100MM+ trading win. In other words, BAC posted losses on a whopping 31% of the trading days (compared to 0% two quarters ago), something that indicates a very violent return to normalcy: after all if banks, with ZIRP, legal frontrunning, profit from default risk surges, and POMO are unable to make money 100% of the time, who else, besides all the day traders on twitter and the fine men and women on Fast Money of course, will post flawless trading records in the future?

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


And a very convenient chart which we hope other banks will follow suit in providing is the following presentation of the bank's VaR alongside its daily P&L. Granted, BAC could actually go ahead and mark the second axis properly, but what is most interesting is that, aside from the two $100MM+ losses distinctly highlighted (one of which obviously occurred around the time of the US debt ceiling fiasco, and the other in late August) is that the higher VaR goes, the lower the P&L trends! This has huge implications for market practice as it goes contrary to most prevailing conceptions, namely that the greater the risk, the greater the payoff on average, and, naturally, the greater the risk of a disastrous blow up. If confirmed by other banks this could serve as a policy guideline to limit excess risk-taking during times of high stress due to empirically proven adverse results on average.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).




More on ZeroHedge...

Reply to share your thoughts on this current event.


Reply



futures io > > > > Bank Of America Posts Two $100MM+ Losses In Past Quarter

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
BAC Bank of America Corp Big Mike Stocks and ETFs Trading 102 January 12th, 2014 08:45 AM
Bank of America's New Drama: What Will the CEO Do Now? Quick Summary News and Current Events 0 September 8th, 2011 12:00 PM
Bank Of America Scrambles To Shore Up Capital kbit News and Current Events 0 August 10th, 2011 09:01 PM
Bank of America stock plunges 20% kbit News and Current Events 1 August 8th, 2011 08:33 PM
Victims in Bank of America screw up threaten to foreclose on bank assets RM99 Off-Topic 4 June 6th, 2011 09:54 PM


All times are GMT -4. The time now is 09:04 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-18 in 0.06 seconds with 19 queries on phoenix via your IP 107.20.115.174