Bank of America (BAC) Takes Aim at Financial Critics
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Tuesday Bank of America (NYSE: BAC) fired back at critics who made claims the nation's largest bank is still not recognizing billions in losses.
The company specifically responded to a speculative post from BusinessInsider's Henry Blodget, who suggested the company may need to raise $100-$200 billion.
In response to Mr. Blodget’s posts, which perpetuated rumors of a large capital shortfall, Bank of America said his claims were "exaggerated and unwarranted." BofA said the sovereign exposure Blodget noted was "off by a factor of 10" and the commercial real estate figures "are off by a factor of four."
Bank of America was not the only one defending the stock Tuesday, however. Popular financial analyst Dick Bove said he sees no reason whatsoever for the company to raise capital even if the stock goes to a penny. "If you're going to break a bank, you're going to have a run on its deposits. That's not happening. Exactly the opposite is happening… Deposits are pouring into Bank of America," Bove said.
Shares of Bank of America closed down nearly 2 percent despite the rise in the broader market.
The company specifically responded to a speculative post from BusinessInsider's Henry Blodget, who suggested the company may need to raise $100-$200 billion.
In response to Mr. Blodget’s posts, which perpetuated rumors of a large capital shortfall, Bank of America said his claims were "exaggerated and unwarranted." BofA said the sovereign exposure Blodget noted was "off by a factor of 10" and the commercial real estate figures "are off by a factor of four."
Bank of America was not the only one defending the stock Tuesday, however. Popular financial analyst Dick Bove said he sees no reason whatsoever for the company to raise capital even if the stock goes to a penny. "If you're going to break a bank, you're going to have a run on its deposits. That's not happening. Exactly the opposite is happening… Deposits are pouring into Bank of America," Bove said.
Shares of Bank of America closed down nearly 2 percent despite the rise in the broader market.
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