NEW YORK — Bank of America shares hit a two-year low Monday. The stock fell 2.8 percent to close at $9.72 after hitting a midday low of $9.53. It is the only large bank with a share price in the single digits.
Most bank stocks fell Monday on fears about the effect of a potential U.S. government debt default.
However, investors have been selling off BofA stock for several months. In the past 12 months, BofA’s stock has fallen 35 percent, making it the third-worst-performing stock in the Standard & Poor’s 500 index. On Friday, the stock fell below $10 for the first time since May 2009. It had traded as low as $2.53 in February 2009.
The stock decline is a setback for the nation’s largest bank and chief executive Brian Moynihan, who has had to deal with multiple crises in the past year. Most have been related to mortgage problems stemming from the bank’s 2008 purchase of Countrywide Financial.
Recently, the bank has taken several steps to put its mortgage woes behind it. On June 29, BofA announced its latest settlement with investors who claim they were knowingly sold poorly written mortgage bonds. At $8.5 billion, it was the largest bank settlement ever announced. The Associated Press
Bank stock declines
Bank of America
Close: $9.72
Change: Down 2.8%
Citigroup
Close: $37.74
Change: Down 1.6%
JPMorgan Chase
Close: $39.83
Change: Down 0.4%
Wells Fargo
Close: $26.88
Change: Down 1.1%
Source: The Associated Press
