Bank of America shares fall on AIG lawsuit, economy
Bank of America Corp (BAC.N) shares fell as much as 9.5 percent to their lowest level since April 2009 on Monday morning over fears of a slowing U.S. economy and challenges to a multi-billion dollar mortgage settlement.
Bank stocks broadly fell after Standard & Poor's stripped the United States of its top credit rating and the European Central Bank intervened in bond markets, triggering fears that the global economy is destabilizing.
Bank of America's shares fell more than most of its peers after insurer American International Group (AIG.N) said it would sue the bank to recoup more than $10 billion in mortgage bond losses.
Bank of America shares were down 8.4 percent at $7.48 in morning trading. The KBW Bank Index .BKX fell 2.97 percent.
Analysts said investors were reacting to the latest challenge to Bank of America's $8.5 billion proposed settlement with mortgage investors over repurchasing toxic home loans.
"It makes investors question whether the bank will need to raise capital," said Keefe, Bruyette & Woods Inc analyst Jefferson Harralson.
Citigroup Inc (C.N) shares fell 5.4 percent to $31.60, JPMorgan Chase & Co (JPM.N) fell 2.1 percent to $36.80 and Wells Fargo & Co (WFC.N) shares dipped 1.3 percent to $24.87.
[Source: Reuters, Charlotte, North Carolina, 08Aug11]
Informes sobre DESC
|This document has been published on 09Aug11 by the Equipo Nizkor and Derechos Human Rights. In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.|