At market close, the Dow and S&P had fallen 5.5% and 6.6%, respectively. But that's nothing compared to Bank of America's 20% plummet after insurance giant AIG sued the bank for $10 billion for overvaluing mortgage-backed securities.

Apple could buy Bank of America in cash right now Apple-centric thinker Philip Elmer-DeWitt took note of the plummeting Bank of America stock today and did a simple calculation. "As of June 25, Apple's holdings in cash and marketable securities stood at $76.2 billion. That's enough to buy Bank of America outright and still have more than $6 billion left over... Why isn't Apple AAAA?"

This is Bank of America's 'No Good, Very Bad Day' writes Michael de la Merced at The New York Times.

It isn't clear just what is behind the wave of selling that has crashed upon the banking giant. The biggest new headache that the firm must contend with is a $10 billion lawsuit by the American International Group tied to faulty mortgage-backed securities. (Read the lawsuit.)

...Another major contributing factor may be a bearish analyst report by Mike Mayo of CLSA that was published on Monday. Mr. Mayo downgraded Bank of America to "underperform" on concern that the firm may need to embark on another round of capital-raising.

The bank is running out of money, notes Paul Miller, an analyst at FBR Capital Markets, speaking to Reuters. "A lot of people think the bank will have to raise capital, and any major capital raise will be massively dilutive. The bank just can't get its hands around the liabilities it's facing."

Read the full story at The Atlantic Wire.