$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.