Insight into the Mighty Bank of America
Bank of America Corp. (NYSE:BAC) shares have lost almost half of their value in 2011 and now trade just above $7. Is there any hope left for shareholders and how did they get in this mess?
(BusinessWeek.com) Can Brian Moynihan Save Bank of America? | By Paul M. Barrett and Dawn Kopecki
WallStNation.com Sponsors - Become one Today
The CEO holds the fate of the U.S.'s largest bank—and the entire financial system—in his unproven hands
On the afternoon of Aug. 23, Gary G. Lynch, the global chief of legal, compliance, and regulatory relations for Bank of America (BAC), was attending a meeting in Washington when the floor heaved. Although Lynch, a lanky 61-year-old attorney with swept-back white hair, had never experienced an earthquake, he possessed the good sense to get beneath a sturdy conference table, along with several other people. “If the ceiling came down,” he recalls, “I thought we were dead.”
The ceiling held, despite the magnitude 5.8 quake rippling from its epicenter in Virginia. Minutes later, Lynch pulled out his BlackBerry and discovered another startling development: a rumor rattling Wall Street that Bank of America might get swept into an involuntary, government-orchestrated rescue by its smaller rival JPMorgan Chase (JPM). “This is really getting nuts,” he thought.