Is $20 billion Enough for Bank of America?
Bank of America (BAC) today reported a loss of $1.79 billion in the fourth quarter and this is not including Merrill Lynch, which it acquired recently. Merrill Lynch lost a record $15.31bn in the quarter. Bank of America financials are supposed to be good until the purchased of Merrill. Additionally, Bank of America today announced that they received another $20 billion capital infusion from the Fed. This is on top of the $25bn the bank received from Tarp funds last October . This confirms that the crisis in the financial/bank sector is not yet over and it looks like everybody thinks that the government will not let these major banks fail.
Bank of America (BAC) stocks down more than 8% this morning.
Now, the question again is, is $20 billion enough and how far more can the Fed go?
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Tags: BAC, Bank of America, BofA, Stock Market, stocks
This entry was posted on Friday, January 16, 2009 at 9:44 am and is filed under Stock Watch. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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