Bank Of America Closes Down 26.23%

by Darren

To say it was a bad day for Bank of America would be a bit of an understatement. It’s no real wonder why. Investor sentiment is squarely negative when it comes to financial stocks. Bank of America (NYSE:BAC) is a company that’s right at the center of the current financial maelstrom, and was punished particularly hard today in a down market. The Dow Jones Industrial Average finished with its’ lowest total in 5 years, and BAC closed 26.23% down.

The Bears Have It

Investors are obviously aware that a three week ban on the short selling of stocks of financial companies is about to end tomorrow. This may have put additional selling pressure on BAC, as people made sure to hit the exits before an even more massive stampede.

Internationally, the mood is plenty glum. Thousands of UK bank customers are scrambling because of the apparent failure of Icesave, which has been forced into receivership by the Icelandic government. In order to get their money, Brits will now have to appeal directly to the government of Iceland.

BAC is one company that’s majorly on the hook for bad mortgage loans. Not only that, but business really stinks for the Charlotte, N.C.-based bank. They reported that 3rd Quarter earnings were down 68% and they cut their dividend in half to 32 cents per share.

Despite the gloom and doom, BAC is now one of the rarest of all bank companies: one that’s still making a profit. That’s not enough to excite many investors into Bullishness, considering the current global climate.