Bank of America's share price fell by 20% as US financials were routed in Monday trading over growth fears and S&P's downgrade of the US credit rating.
Publically-traded banks and other financials slumped on the day government lenders Fannie Mae and Freddie Mac had their credit ratings cut to AA+ by S&P, in line with Friday's move to downgrade the US itself. Bank of America closed down 20.1% at $6.51 amid a wider market sell-off which saw the S&P 500 tumble 6.66% to 1,119. Citigroup fell by 16.4% to $27.95, Morgan Stanley fell 14.5% to $17.12 and JPMorgan Chase dropped 9.4% to 34.06. Goldman Sachs was down 6% at $117.66. Bailed-out US insurer AIG filed a lawsuit against BofA yesterday over $10bn worth of losses on mortgage-backed ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
