The above graph shows the price of Bank of America’s stock plunge over the past thirty days. The market has experienced a decline of 2.70% but BofA’s stock has declined 19.62% in this same period of time. What are possible factors in this loss? Their position against the 2nd amendment of the US Constitution may be partially responsible. The Occupy Wall Street 99% and their own stockholders have also targeted this bank:
“Bank of America, Bad for America” went the chant of protesters outside of the Charlotte headquarters with a large ball and chain marked with the word “DEBT” sitting it the background. Meanwhile shareholders piled into the annual meeting that serves as a formality of transparency for publicly traded companies . Unlike previous years, executives experienced something more than formality as people armed with shares of the big bank came to the mic demanding answers and accountability for Bank of America’s alleged fraudulent mortgage practices, funding in predatory payday loan stores, investing in dirty coal, and crashing the economy. The laundry list of wrongdoing by the bank cost millions of families their homes and their health.
Or is one (or more) of the following examples of their activities responsible:
This financial institution has been found guilty of laundering South American drug money in 2006 ($7.5 million settlement).
They received $20 billion in US Treasury support with an additional $118 billion government backstop to buy Merrill Lynch.
They failed to properly disclose employee bonuses and financial losses at Merrill Lynch before shareholders approved the merger of the companies: $150 million settlement with the SEC.
Bank of America Illegally Foreclosed on Active Service Members’ Homes. Settlement agreement was $20 million.
Their purchase of Countrywide resulted in a loss of $65 billion to stockholders.
They paid $335 million to settle Countrywide’s housing discrimination claims.
They paid $410 million to settle a class-action lawsuit affecting more than 13 million Bank of America customers who accused the bank of charging excessive overdraft fees for electronic transactions.
Bank of America moved approximately$18 trillion worth of derivative obligations from Merrill Lynch and the BAC holding company to the FDIC insured retail deposit division. This transfers the risk from the bank to the taxpayers since the FDIC cannot cover this amount.
Their executives are major donors to the president’s reelection campaign.
The president will give his acceptance speech for the Democrat nomination for president at the Bank of America Stadium in Charlotte.
Warren Buffett injected $5 billion into Bank of America for special considerations for stock warrants and a 6% annual return for ten years. This bank’s regular personal savings account pays 0.05% annually.
Whatever the reasons, the primary reason is their $75 trillion credit derivative exposure as the European Union collapses. If you have any assets in this financial institution, now would be a good time to follow the example of the Greek and Spanish people.