Bank Of America Stock Plunges 50%. No Big Surprise

AIG sued BAC for $10 billion today (for massive mortgage fraud) which sent the stock down 21% Story from CNN below.

CNN

Investors are losing confidence in Bank of America.

"Management has tried to reassure investors over the course of the last six months that they are getting on top of the mortgage problem but investors are very skeptical," he said, adding that there's really nothing that Bank of America can do to stop its stock price from falling.

There was more bad news for Bank of America. Credit default swaps (CDS) tied to its debt were at their highest level since May 2009.

Credit default swaps reflect the interest rates that Bank of America has to pay to borrow money. If they keep rising, Staite said it would exacerbate investor concerns about whether the company has enough liquidity to run its business.

This is on top of the fact that anyone with less than 5000 dollars in their checking account will be charged 15 dollars per month along with other gotcha fees. Who keeps over 5000 dollars in a checking account? No one apparently because investors are not only getting rid of stock but their cash deposits are drying up as money is being pulled from the bank at astonishing levels.

I hate Bank Of America. They have been the worst at customer service and now it's coming back to bite them in ass.

Good.