(Source: The Atlantic) – While most big U.S. banks appear to have recovered fairly well from the financial crisis, Bank of America continues to struggle. Its instability stems in large part from its acquisition of mortgage giant Countrywide in 2008. Recent lawsuits and other legal action over mortgages written during the housing bubble continue to plague the firm and highlight the uncertainty surrounding when its real estate-related losses will finally subside. The firm has recently attempted to add some cushion to its capital base to prepare for future losses and to calm fearful investors. But should these recent signals only worry investors even more?China Construction Bank $8.3 Billion Share Sale
The most recent news came on Monday. BOA will sell 13.1 billion shares it holds in China Construction Bank Corp., about half of its 10% stake. The sale will produce $8.3 billion in fresh capital, of which $3.3 billion will be profit for BOA.
Source: The Atlantic
Aug 29 2011, 4:04 PM ET
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