Banks sink Wall Street, BofA below $5/share

[Roland99]

http://news.yahoo.com/stock-index-futures-signal-early-gains-100935037.html

Banks dragged the stock market lower on Monday, with losses accelerating late after Bank of America's stock price fell below

$5 for the first time in nearly three years.

Warnings of deteriorating conditions in the euro zone and concerns about tougher capital rules that could cut into big banks' profits pressured the financials throughout the day.

When BofA, the largest U.S. bank, plunged through $5, it ignited a late-day decline in the sector and the broader market, which fell 1 percent. More than 29 million shares of the stock traded, accounting for about 5.4 percent of the day's total trading.

Going to be interesting tomorrow to see what funds start dumping BAC.

[dixiegrrrrl]

1. Maybe as I feared.

BOA, you may remember, stuck all its derivatives into its banking division, where they will be considered "assests" that have to be covered by insurance ( DIC and other counter parties) if BOA goes down.
IE: it may make more money crashing and burning than it will staying alive.
I suspect maybe some bigger bank will buy it..who knows what the hell can happen any more.

[LiberalEsto]

2. The BOA execs will still get their fat bonuses

because after all, they worked hard and they deserve every penny. Hah.

[Kablooie]

5. Of course. They have to live up to their contracted agreements. (Unless you are a customer)

[NoodleyAppendage]

3. The bank ads on the revamped site are ironic...and extremely annoying

Aside from the fact that the ads will push all post text into a narrow window width, the commercial assault on the new DU is annoying to say the least.

J

[Kablooie]

4. Get ready! Here comes another humongous stimulus package! Hooray!

[sarcasmo]

6. Bank of America stock closed today at 5.21

Which is 21 cents higher than the 5 dollar debit fee they were trying to steal from their customers.