Will Bank of America’s Share Buyback Elate These Top Institutional Shareholders?

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Bank of America Corporation (NYSE:BAC) may consider redeeming Warren Buffett’s holding of preferred stock worth $5 billion which was issued to him during a difficult time back in 2011. The preferred stock carries a dividend of 6%, which is expensive considering the average yield on the bank’s long-term debt as per the most recent quarter, it is only about 3%. The buyback would cost $250 million, but would generate savings of $300 million a year and would make sense considering the bank is now on a much firmer footing. Their shares have doubled over 2012 and deposits have poured in.

Will Bank of America Corporation’s shareholders increase their holdings? They reported owning a total of 6.097 billion shares on 09/30/2012. The shares closed at $8.82 on 09/30/2012.

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Here are the ten largest positions in Bank of America Corporation at the end of September 30th, 2012.

Vanguard Group Inc. held 451,163,358 shares on 09/30/2012 worth $3,983,772,417. This brought the portfolio total to 0.51%.

State Street Corp. held 433,013,976 shares on 09/30/2012 worth $3,823,513,375. This brought the portfolio total to 0.56%.

Blackrock Institutional Trust Company N.A. held 291,723,650 shares on 09/30/2012 worth $2,575,919,807. This brought the portfolio total to 0.59%.

Citigroup Inc. held 230,224,409 shares on 09/30/2012 worth $2,032,881,514. This brought the portfolio total to 2.0%.

J.P Morgan Chase & /co. held 214,318,306 shares on 09/30/2012 worth $1,892,430,626. This brought the portfolio total to 0.68%.

Goldman Sachs Group Inc. held 176,418,107 shares on 09/30/2012 worth $1,557,771,871. This brought the portfolio total to 0.62%.

Price T. Rowe Associates Inc. /MD/ held 154,755,893 shares on 09/30/2012 worth $1,366,494,523. This brought the portfolio total to 0.4%.

Wellington Management Co. LLP. held 138,221,568 shares on 09/30/2012 worth $1,220,496,435. This brought the portfolio total to 0.44%.

Northern Trust Corp. held 134,975,803 shares on 09/30/2012 worth $1,191,836,330. This brought the portfolio total to 0.5%.

Dodge & Cox held 133,119,849 shares on 09/30/2012 worth $1,175,448,257. This brought the portfolio total to 1.53%.

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