Bank of America Falls to $5/share (BAC, JPM, GS, MS, WFC)
Shares of Bank of America Corp. (NYSE: BAC) posted a new 52-week low today at $5/share. BofA isn’t the only loser in the financial sector — JPMorgan Chase & Co. (NYSE: JPM), Goldman Sachs Group, Inc. (NYSE: GS), Morgan Stanley…
Shares of Bank of America Corp. (NYSE: BAC) posted a new 52-week low today at $5/share. BofA isn’t the only loser in the financial sector — JPMorgan Chase & Co. (NYSE: JPM), Goldman Sachs Group, Inc. (NYSE: GS), Morgan Stanley (NYSE: MS), and Wells Fargo & Co. (NYSE: WFC) are sharing in the pain.
One factor is the decision by the US Federal Reserve Bank to adopt the Basel III rules which require the banks to hold more of their capital in reserve. Another is the comment by the European Central Bank’s president that much uncertainty and substantial risk still remain in the economic outlook for the Eurozone.
The higher capital reserve requirements are hitting the big banks the hardest, as investors fear that increased reserves will weigh on profits. And the weakest of the banks, at the moment, is perceived to be BofA, so it is getting hit the hardest.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.