Bank of America’s efforts to raise $10 billion in capital are said to be “on track.” If so, those tracks are running straight down.
The shares still haven’t priced, and won’t price tonight at all. Final pricing won’t be reached until tomorrow morning. What’s worse, the shares will be priced at $22 to $23 dollars, 10 bucks or nearly 30% off the closing price last night, according to CNBC’s David Faber.
Keep in mind the BofA reportedly rushed it’s efforts to raise $10 billion in capital because it wanted to beat Wells Fargo and Citi to the market. In short, they wanted to do the deal right here, right now because they figure things will get even worse.
Merrill Lynch, of course, is getting wrecked on this news. It’s back down to the levels it hit in the days leading up to the bankruptcy of Lehman Brothers and Merrill’s merger with BofA.
America to BofA: Since we’re clearly not getting our money back, can we have our name back please?