As Bank Of America Tanks, Spokesman Insists: We Do Not Have To Raise Capital

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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.