Bank of America may need to raise up $50 billion: Analyst
Bank of America saw its stock drop almost 8 percent Monday as litigation worries weighed on the shares as well as a Jefferies analyst telling clients the bank may need to raise up to $50 billion.
BofA finished trading in New York at $6.42, down 55 cents. That was the share’s low point for the day, with almost double the number of shares changing hands on a typical day. That pushed the bank’s shares down to where they were trading at earlier this month, and before that, since March 2009.
Wells Fargo (NYSE: WFC) closed at $22.89, down 47 cents, or 2 percent. J.P. Morgan Chase (NYSE: JPM) finished at $33.41, down 94 cents, or almost 3 percent.
It didn’t help that the Mortgage Bankers Association said the number of people behind on their mortgages rose slightly in the second quarter over the first quarter, signaling another wave of housing woes for bankers.
BofA (NYSE: BAC) and shares of other big banks also came under pressure Monday over the Wall Street Journal’s report about problems major banks were facing in reaching a settlement with state attorneys general over foreclosure issues and what protection from further legal liabilities the the banks would get for a paying penalties of $20 billion to $25 billion.
“They wanted to be released from everything, including original sin,” a U.S. official told the newspaper.
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All I can say is…