Bank Of America (BAC) Rises On Hopes Government Will Suspend Reality

This is how it works. This morning, investors were looking at reality and whacked Bank of America (BAC) shares almost 20% to below $4. But this afternoon, the rumour of the day is that the government is set to suspend mark-to-market accounting. In otherwords, the banks may be able to claim their books are whatever they want them to be. And in this unreality land, it’s not hard to imagine BofA having a healthy balance sheet. So, along with several other financials, it’s back up, though still slightly below $5.

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