(Source: Forbes) – Bank stocks tanked yesterday, led by blue whale Bank of America (BAC) who suffered a 20% harpoon blow to its stock price. Except for a previous drop in bank stocks in March of 2009, according to the AP, it’s the lowest level for BAC in two decades.If BAC was the only financial services stock to plummet yesterday – actually over the last few sessions – you might write it off (pun intended) to news of AIG’s pending $10 billion lawsuit against the bank for bad mortgage bonds. (The Wall Street Journal and I reported in September 2010 that AIG was looking at lawsuits for the alleged dreck sold to them.)
That lawsuit, and the others already filed and being disputed, plus the downgrade of the sovereign rating for the U.S. is more than enough to give financial services investors the heebie-jeebies.
8/09/2011 @ 02:07PM
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