Posted August 19th, 2011
It’s really amazing to me that nobody has connected the slumping stock market with the fact that one of the four major US banks is on life support.
By: David Dayen
There are 30 stocks in the Dow Jones Industrial Average. Bank of America is one of them. They’re down close to 50% on the year. That cannot be a non-factor.
The warning signs for Bank of America are all there. The liabilities are rising. The lawsuits keep coming in. The Knights of Columbus actually expanded their challenge to the large settlement on mortgage backed securities, another signal that the get-out-of-jail free card that BofA sought is not forthcoming.
They’ve desperately tried to cut operating costs without resorting to raise capital, which would be given away cheaply because of the stock price. They started selling various units, a Canadian credit card company, some commercial real estate properties, everything non-core that wasn’t nailed down. And now, they plan to cut labor costs. ......
http://it.cm-blogs.com/bank-of-america-death-watch-mass-layoffs-imminent/
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