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Bank of America shares dip below $10
Stock Market News |
2011/07/15 12:19
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Bank of America shares fell below $10 for the first time since May 2009.
The stock price hit a low of $9.88 Friday, making it the only one of the four largest banks with a share price in the single digits. Most large bank stocks fell on Friday on fears of the fallout of the European debt crisis and the results of stress tests on the European banks' ability to withstand economic stress.
Investors have ben bailing out of Bank of America stock for several months, driving the price. In the past 12 months, Bank of America Corp.'s stock has fallen 35 percent, making it the third worst performing stock in the Standard & Poor's 500 index. On Friday, the stock closed at $10, down 0.7 percent for the day.
The stock decline is a setback for the nation's largest bank and its CEO Brian Moynihan, who has had to deal with multiple crises in the last year, mostly related to mortgage problems stemming from the bank's 2008 purchase of Countrywide Financial.
On June 29, Bank of America announced its latest settlement with investors who claim they were knowingly sold poorly written mortgage bonds. At $8.5 billion, it was the largest bank settlement ever announced. The amount eclipsed the last three years of earnings at the Charlotte, N.C. bank.
The stock also reflects investors' anxieties over how deep Bank of America's problems might be, says Cassandra Toroian, president and chief investment officer at Bell Rock Capital. |
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Investment Fraud Litigation |
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Securities fraud, also known as stock fraud and investment fraud, is a practice that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of the securities laws. Securities Arbitration. Generally speaking, securities fraud consists of deceptive practices in the stock and commodity markets, and occurs when investors are enticed to part with their money based on untrue statements.
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