Bank of America Corp. was sued by American International Group Inc. more than $ 10 billion so-called "massive fraud" in the mortgage bank's shares fell 20.3 percent my problem that can not not handle a deepening quagmire dispute.
Shares of large U.S. banks fell to its lowest level since March 2009 and ended almost a third of the market value of the bank, or more than $ 32 billion over the last three trading days.
Shares fell $ 1.66 to $ 6.51 on the New York Stock Exchange, after falling $ 6.31.
"Many believe that the bank will need to raise capital, and all significant capital will be severely diluted," said Paul Miller, an analyst at FBR Capital Markets. "The bank is not your hands to the obligations they face ".
The current picture came amid a broader market decline that downgrades from Standard & Poor in the United States followed. Shares of AIG fell $ 2.52, or 10 percent, to $ 22.58.
The trial could hamper the efforts of the Bank of America CEO Brian Moynihan a loss of $ 2.5 million to purchase bank shares in July 2008 from Countrywide Financial Corp., the largest U.S. mortgage lender.
The acquisition, construction predecessor Moynihan, Kenneth Lewis, is now considered a disaster for Charlotte, North Carolina, Bank of America, because of the costs and bad debt write.
Moynihan "a ton of Obesity inherited" such as Countrywide, which became "a sinking ship," said Michael Mullaney, who helps invest $ 9500000000 in Management Trust Co. in Boston, which sold almost all its shares in the bank. "Bank Award of U.S. stocks will be under pressure."
Tony Plath, a finance professor at the University of North Carolina at Charlotte, said investors may speculate that drastic measures.
"If the shares traded at $ 6 or $ 7, there is simply no way they can raise capital not only eliminate the existing shareholders," he said.
If AIG is one of a growing number of lawsuits filed by investors who want to hold banks liable for losses on soured mortgage loans that have contributed to the financial crisis.
AIG expects litigation to other devices to restore the loss of "trying to profit at our expense." Taxpayers who still owns 77 percent of the insurer based in New York, which is 182.3 billion in dollars in government rescue received.
In his complaint, accused AIG Bank of America and Merrill Lynch and Countrywide units to the quality of mortgage-backed securities, including more than 28 million U.S. dollars that are purchased and the rating agencies to distort the underlying loans.
AIG said that 262,322 mortgages reviewed 349 cases between 2005 and 2007, he bought and found that the quality of 40, 2 percent of mortgages were much lower than it was.
"The suspects were involved in a massive program to manipulate and mislead investors, like AIG, who had no alternative but to rely on lies and omissions," the atmosphere in the state New York Supreme Court in Manhattan.
Bank of America AIG denied the allegations.
"AIG reckless higher revenues and profits for the structured finance and mortgage markets continues," said the spokesman, Lawrence Di Rita.
"This is the definition of an investor with experience, with losses only to their own excesses and errors."
New York Times, AIG has been preparing similar lawsuits against other banks.
Shares of large U.S. banks fell to its lowest level since March 2009 and ended almost a third of the market value of the bank, or more than $ 32 billion over the last three trading days.
Shares fell $ 1.66 to $ 6.51 on the New York Stock Exchange, after falling $ 6.31.
"Many believe that the bank will need to raise capital, and all significant capital will be severely diluted," said Paul Miller, an analyst at FBR Capital Markets. "The bank is not your hands to the obligations they face ".
The current picture came amid a broader market decline that downgrades from Standard & Poor in the United States followed. Shares of AIG fell $ 2.52, or 10 percent, to $ 22.58.
The trial could hamper the efforts of the Bank of America CEO Brian Moynihan a loss of $ 2.5 million to purchase bank shares in July 2008 from Countrywide Financial Corp., the largest U.S. mortgage lender.
The acquisition, construction predecessor Moynihan, Kenneth Lewis, is now considered a disaster for Charlotte, North Carolina, Bank of America, because of the costs and bad debt write.
Moynihan "a ton of Obesity inherited" such as Countrywide, which became "a sinking ship," said Michael Mullaney, who helps invest $ 9500000000 in Management Trust Co. in Boston, which sold almost all its shares in the bank. "Bank Award of U.S. stocks will be under pressure."
Tony Plath, a finance professor at the University of North Carolina at Charlotte, said investors may speculate that drastic measures.
"If the shares traded at $ 6 or $ 7, there is simply no way they can raise capital not only eliminate the existing shareholders," he said.
If AIG is one of a growing number of lawsuits filed by investors who want to hold banks liable for losses on soured mortgage loans that have contributed to the financial crisis.
AIG expects litigation to other devices to restore the loss of "trying to profit at our expense." Taxpayers who still owns 77 percent of the insurer based in New York, which is 182.3 billion in dollars in government rescue received.
In his complaint, accused AIG Bank of America and Merrill Lynch and Countrywide units to the quality of mortgage-backed securities, including more than 28 million U.S. dollars that are purchased and the rating agencies to distort the underlying loans.
AIG said that 262,322 mortgages reviewed 349 cases between 2005 and 2007, he bought and found that the quality of 40, 2 percent of mortgages were much lower than it was.
"The suspects were involved in a massive program to manipulate and mislead investors, like AIG, who had no alternative but to rely on lies and omissions," the atmosphere in the state New York Supreme Court in Manhattan.
Bank of America AIG denied the allegations.
"AIG reckless higher revenues and profits for the structured finance and mortgage markets continues," said the spokesman, Lawrence Di Rita.
"This is the definition of an investor with experience, with losses only to their own excesses and errors."
New York Times, AIG has been preparing similar lawsuits against other banks.
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