Now $6.81/share and staring bankruptcy in the face.
Aug. 8, 2011, 3:22 p.m. EDT
'Can't rule out' B. of A. capital raise: analyst
By Greg Morcroft
Marketwatch.com
NEW YORK (MarketWatch) -- CLSA analyst Mike Mayo said in a Monday client note that investors can no longer rule out a capital raise being needed at Bank of America, and he downgraded the shares for the second time since July 20. Bank of America shares traded off more than 20% at one point Monday amid a broad selloff that saw the Dow fall more than 600 points. Bank of America, a Dow component, is reportedly also about to be sued by American International Group Inc. over mortgage securities B. of A. sold the insurer. "On July 20th, we lowered our rating on Bank of America a notch and said that we prefer Wells Fargo," Mayo said, "and we reiterate this view with another downgrade of BAC ... given less confidence that BAC will not have to raise capital. The market could force this outcome if CDS spreads continue to widen.
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