This alone has to be one of the big fears for the market: What’s happening and what’s going to happen with Bank of America?
The stock is now down about 15% on the day, falling below $7/share.
For a little more perspective, it was above $10/share as recently as late July.
All of the downgrade/economy stuff obviously hurts, but the latest catalyst is the news that AIG is jumping into the lawsuit fray against it.
This kind of one-day decline for an obviously too-big-to-fail bank is obviously reminiscent of the bad old days in 2008.