Bank of America Stock Fell 20%

Posted by Zotta Rendevouz

Bank of America fell 20 percent Monday as investors reacted to a portion of a further $ 10 billion, the insurance company American International Group filed against the company.

The dramatic fall in a day not unlike the market fell during the 2008 financial crisis, and stands out even among a number of the total market sales, which left the Dow Jones Industrial Average more than 600 points late in the day .

BOFA closed at $ 6.51 Monday, down 20.32 percent from the opening bell, after a day of fast storage rejects the Dow shed 634 points. Dow closed at 10,809, after dipping below 11,000 for the first time since November 2010, making Monday the sixth worst trading day history of Dow.

The rest of the market, the S & P 500 fell 6.66 percent and the Nasdaq Composite closed down 6.9 percent.

Monday, AIG announced it was suing the Bank of America for more than $ 10 million, alleging that Bank of America and the acquisition of Merrill Lynch and Countrywide Financial, has participated in a "massive fraud" by selling securities backed by AIG between 2005 and 2007. AIG claims that over 40 percent of mortgages have been presented as being safer than they really were.

A spokesman for Bank of America responded that AIG "is the very definition of knowledge, seasoned investor" and should be held responsible for any purchase is made.

BOFA stocks slide, the worst since April 2009, has been reflected in falls among the main donors. Citigroup was down 16 percent at the end of the day, Morgan Stanley closed up 14 percent, JPMorgan and Wells Fargo were both decreased by 9 percent and Goldman Sachs fell 6 percent.

Own AIG stock fell 10 percent to $ 22.58.

Bank of America, the country's largest banks by assets, saw its stock value drop by 54 percent since early 2011. Last month, BOFA reported losses of 8.8 billion kronor in the second quarter, the worst quarterly earnings report ever.

Wednesday, CEO of Bank of America, Brian Moynihan will answer questions from shareholders during a conference call of 90 minutes. A press release of Fairholme Capital Management, a major shareholder in Bank of America, says, "skeptics are invited to participate."

Monday market crash is considered a historical response to Standard & Poor's downgraded the credit of the United States last Friday and concerns that Italy and Spain could fall into default in the context of the worsening debt crisis Europe. Investors also took a series of disappointing economic reports in recent days, raising fears that the U.S. economy could be headed for a double dip recession.