Subject: Re: BAC
Here is another piece from the FT that puts things in perspective: https://archive.ph/BNWk7

I think it was a huge mistake to put the deposits into these bonds at record low interest rates but at this price BAC looks pretty attractive. The bonds in the HTM portfolio have an average life of 8.5 years and 5.5 years in the AFS portfolio. They will gradually be recycled into higher yielding assets as they mature. The paper loss is pretty much meaningless for a TBTF bank, it could develop into an earnings problem though if they have to pay much higher rates on the deposits.