$5 and Falling: Bank of America Stock Crosses a Dangerous Line

Bank of America's stock dropped below $5 for the first time since 2009, passing an ominous threshold that could signal further decline in its share price. Some mutual and pension funds will not keep stocks below $5, Halah Touryalai reports at Forbes. Amid the euro crisis and questions about the bank's liability in mortgage lawsuits, investors have sent the stock plunging 66% since this spring.

Monday was not a great day for anybody on Wall Street, but it was a truly terrible day for Bank of America. The company's stock price started a freefall following the latest bad news about Europe's economy at the end of last week and tumbled to its lowest level since the days of the financial crisis on Monday afternoon, dipping below the $5 mark and hovering around $4.90. This is a huge line in the sand," explains The Wall Street Journal's Mark Gongloff. "That makes Bank of America the worst performer in the Dow industrials. But J.P. Morgan isn't far behind, down 2.6 percent."

Read the full story at The Atlantic Wire.

Presented by

The Atlantic Wire is your authoritative guide to the news and ideas that matter most right now.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register with Disqus.

Please note that The Atlantic's account system is separate from our commenting system. To log in or register with The Atlantic, use the Sign In button at the top of every page.

blog comments powered by Disqus

Video

Cryotherapy's Dubious Appeal

James Hamblin tries a questionable medical treatment.

Video

Confessions of Moms Around the World

In Europe, mothers get maternity leave, discounted daycare, and flexible working hours.

Video

How Do Trees Know When It's Spring?

The science behind beautiful seasonal blooming

More in Business

Just In