Bank of America‘s stock slid to a 20 year low today as investors became increasingly convinced that the bank would be nationalized. Share tumbled 18% early today, before climbing back up in the afternoon, says CNNMoney.
Bank of America announced that it would try to cut costs by selling 3 jets and an helicopter. Who exactly do they expect to buy these jets? Can Bank of America afford to offer jet financing to interested parties?
BofA (BAC, Fortune 500) is struggling to digest the acquisitions of Merrill Lynch and mortgage lender Countrywide, and nothing it has done lately has given investors reason to be hopeful.
On Wednesday, BofA said that to cut costs it would sell three of its corporate jets and a helicopter it inherited in the Merrill deal.
Meanwhile, pissed off investors are suing Bank of America for not protecting their interests when working out the Merrill Lynch deal.
Some are calling for [CEO Ken] Lewis to go next. Jerry Finger, an investor who owns more than a million shares of BofA through his Houston-based firm Finger Interests, has said in various interviews that he would like to see Lewis step down.
Finger, who could not immediately be reached for comment, is leading a class-action lawsuit against the company. In the complaint, the plaintiffs allege that Lewis and Thain failed to protect shareholder interests when hammering out the BofA-Merrill deal.
Bank of America or THE Bank of America? [CNNMoney]