Visa IPO's effect on Banks

FirefighterB said: "So, I was just watching a BloombergTV segment about the Visa IPO that posed something I never thought about: Many banks own BILLIONS of dollars of Visa Class B stock. When Visa goes public, they can convert it to Class A and they can sell it. Now, this would prove a financial money BOON to these banks. JPM has 0.73 per share in earnings available if they sold their Visa stock. NCC has enough stock that, if they sold it, they'd only need to earn 0.20/share to meet analyst estimates. That's nuts. So, my question is, could many of these banks shoot back up in value because they sell their Visa stock, effectively quelling much of the losses they've had for their other poor investments?"

bigmike said: "FF, I would think it is possible, but I am not sure on the laws and regulations and if there is anything like an amount of holding time (0 days to years) before they are allowed to sell."

FirefighterB said: "The segment made it sound like they could sell whenever, although they would probably keep a portion on their books. Just curious if the banks will make a-one-time-only boon out of it to pop their prices to scare out shorts and pad their earnings..."

Rbreb13 said: "I don't think the selloff IF (very big IF) it happpens will be all that big. Mastercard IPO'd at $40 and is now around $200. Holding will be what most will do because even though its not cash it's still equity on the books. Visa is bigger than Mastercard so it's potential to go to $200+ is definitely there. Just my thoughts on it."

Harry said: "[QUOTE=FirefighterB;642]So, I was just watching a BloombergTV segment about the Visa IPO that posed something I never thought about: Many banks own BILLIONS of dollars of Visa Class B stock. When Visa goes public, they can convert it to Class A and they can sell it. Now, this would prove a financial money BOON to these banks. JPM has 0.73 per share in earnings available if they sold their Visa stock. NCC has enough stock that, if they sold it, they'd only need to earn 0.20/share to meet analyst estimates. That's nuts. So, my question is, could many of these banks shoot back up in value because they sell their Visa stock, effectively quelling much of the losses they've had for their other poor investments?[/QUOTE] Bingo: I picked up some Banco Bradesco S.A. (BBD) a couple of days ago for some Brazil penetration and tripped over this news. [url]http://www.reuters.com/article/marketsNews/idINN26356262200226?rpc=44&pageNumber=2&virtualBrandChannel=0[/url]"

newinvestor123 said: "I don't know much about its effect on the banks, but I think the IPO itself is going to take a big fat crap on those who buy in."

xtreme balance said: "I'm going to stay far far away from Visa. I don't like buying other people debts! (except when its backed by the gov't)"

Harry said: "VISA stock can do whatever it wants..the banks "get" their money when the IPO umbilical cord is cut. Heck, banks even made money on Vonage. :D"

Raharu Haruha said: "so when can we buy?"

newinvestor123 said: "Fidelity is participating in the IPO offering, so I can buy in... But I'm passing, which means that it will double in the first month."