Bank of America shares continued to fall on Wednesday as nationalization worries grow as shares fall below $5 for the first time since 1990. Speculation continues as investors believe losses will start spiraling out of control from the newly acquired Merrill Lynch & Co. Investors are also concerned this may lead to government control of the largest U.S. bank, leaving shareholder empty handed.
Here's what's happening with Bank of America:
-Shares have fallen to a 18 year low.
-Concerns continue to mount over the losses from Merrill Lynch.
-Ken Lewis, CEO of Bank of America, position is threatened.
Rumors are spreading that increasing losses from mortgages may lead to nationalization. The Charlotte, North Carolina bank would also be looking at the outs of Ken Lewis.
According to the Charlotte Observer, Ken Lewis said in a memo to employees that the bank's board voted "unanimously" supporting Bank of America's business model last week. The meeting was actually noted as the longest board meeting in anyone's memory.
Lewis has been receiving flack from the Merill Lynch deal that has unraveled causing Bank of America to be dependant on government support to contain mounting losses and deteriorating shareholder value.
Bank of America shares have fallen 67 percent this year. Tomorrow is another day. If we are lucky maybe the sun will come out...tomorrow
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