Yesterday CNBC’s Charlie Gasparino broke the news that the CEO of Bank of America is looking to make a “transformational deal” by acquiring a brokerage or insurance company. Of course, everyone wants to be transformational, but no one really wants to pay for it. So how do you get transformation a cut-rate prices? Downgrade the industry!
That at least is a theory voiced by TickerSense today.
This morning we came in to see that the brokerage analyst for Bank of America lowered his estimates on the group. Skeptics may look at this and think that this analyst is only doing a little sucking up so he can get his boss a better price on an acquisition. We’ll hold off for now, but if their insurance analyst lowers his EPS forecasts for that group in the next few days, then we’ll get suspicious.
Sucking Up To The Boss? [TickerSense]
So the second largest bank in the U.S. is going all treehugger. Now call us skeptics but this raised a few questions around the DealBreaker HQ. Or, if you work for Bank of America, just call us back. We couldn’t get anyone on the line to answer our questions this afternoon.
Excerpts from CNN’s coverage of the announcment, with DealBreaker’s questions interrupting.
NEW YORK (CNNMoney.com) – Bank of America announced it will reimburse $3,000 to many of its employees who buy a new hybrid vehicle.
DealBreaker Asks: Was this decision made before or after the President appointed a treehugger as Treasury Secretary? When exactly did BofA decide to put the word out that it is down with the Green?
The nation’s No. 2 bank will make the rebates available to more than 21,000 employees who live within 90 miles of Boston, Charlotte, and Los Angeles. The bank’s main headquarters is in Charlotte.
DealBreaker Asks: Where does the Bank of America Auto Group do a lot of hybrid lending? Where does has BofA financed hybrid-selling dealerships?
“Given the size of our commuting associate base, the hybrid program expands our commitment to the environment and helps our associates to participate in making a difference while cutting down on their commuting costs,” said a statement from Anne Finucane, head of the company’s environmental council. “We are pleased to be one of the first corporations offering this benefit and strengthening our long-standing leadership on environmental issues.”
DealBreaker Asks: How long until the Free Enterprise Action Fund is on the case here? BofA has an “environmental council?” Does it smell as much like patchouli as the environmental council did in college?
Google, Bank of America offer hybrid credit [CNN Money]