As Bank of America continues to tank, a spokesman for the bank is again saying that it does not need to raise more capital.
The spokesman also says they have a good team in place.
Dick Bove, a bank analyst told Charlie Gasparino, “BAC can go to one dollar and it won’t need to raise capital.”
Very few seem to believe the firm.
Because the facts remain:
- Countrywide will cost Bank of America a lot more in mortgage exposure
- AIG just sued BofA for $10 billion
- In its quarterly securities filing, Bank of America said the $3 billion settlement it had previously reached with Fannie Mae and Freddie Mac would potentially increase in cost
- The New York AG rejected the $8.5 billion mortgage settlement BofA originally reached with BlackRock, BNY Mellon, and PIMCO
- In March, the Fed rejected the bank’s plans to pay shareholders dividends.
- In July, the firm said that it might need $50 billion in new capital.
- Bank of America’s share price is down 50% YTD; 17% today.