Bank Of America Tanks On Fears Of New Capital Raise

bank of america

Bank of America (BAC) is off 4.5% on fears it will need to raise new capital.:

WSJ: The Wall Street Journal reported Saturday that Bank of America’s attempt to repay federal bailout funds and escape the government’s grasp has been snagged by a disagreement over how much additional capital the bank must raise to satisfy regulators, according to people familiar with the situation.

Bloomberg essentially backs this theory up, stating that:

Bloomberg: U.S. stocks fell, erasing an early rally, on concern lawmakers will phase out a tax credit for homebuyers and Bank of America Corp. will have to sell shares to pay back its government bailout. The dollar rebounded from a 14- month low against the euro and oil wiped out an early advance. Bank of America sank 5.7 per cent on speculation government officials will force the company to raise more capital.

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