Bank of America is tanking again.Right now it’s down nearly 13% from the open; down 6.89% from Friday.
UPDATE: One trigger is the President of CCB, China Construction Bank, announcing in Hong Kong today that Bank of America will keep at least half of its 10% stake in CCB, not sell it. Earlier word was that BofA was trying to sell all ~$17 billion of it.
Those plans were first hit by news that no one wanted to buy it. Now, the CCB announcement might mean that BofA is close to selling half of it. Or people might be concerned that BofA will retain all of it. That’s a problem as concerns about capital are a significant issue for the bank. It has yet to convince the market that it has enough to hit the 2013 Basel III requirement deadline.
EARLIER: Another trigger is the news that the NY AG is still protesting a settlement despite pressure from the Obama administration.
The settlement would have cost Bank of America (and a handful of other banks) $20 billion but halted some securities investigations and potentially more expensive litigation. News that yet another mortgage-related settlement is falling through would hurt Bank of America’s share price.
But there are a ton of other issues plaguing Bank of America right now. More about that here.
The good news is the bank has plans that address these issues one by one.