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Beyond the S&P downgrade, trading could become even more complicated in Bank of America's stock, if it falls below $5. Under that threshold, many broker-dealers will not allow investors to buy or short a stock on margin, according to a spokesperson for the New York Stock Exchange.
Buying on margin means that an investor can simply put down 50% of the price of a stock initially, and the trading firm advances the rest.
It's been a tough year for the troubled bank, which has seen its share price decline roughly 62% from the start of the year.
Originally posted by Domo1
reply to post by MegasAlexandros
BoA is already saying they will have to lay off 30,000 people. I feel bad for them too. Perhaps a whole bunch of nice small local banks will crop up and offer them jobs. BoA going kaput is actually rather frightening. Imagine where all those loans and accounts and everything will wind up.
Originally posted by DogsNGods
Bad business indeed.
I have read a lot of complaints with regard to Bank of America; but anyone actually taken the time to look at the big picture? Does anyone actually know what the consequences will be when the largest bank in the United States fails?
The situation is complicated. It has a lot more to do with your basic checking and savings account.
Please be careful of what you wish for.
Originally posted by samkent
Lets cut them some slack.
In Jan 08 they announced they would buy Countrywide. In March the FBI started their investigation of CW for fraud.
In Sep of 08 they were forced to choke down Merril Lynch.
They almost had to eat Lehman but the gov wouldn't guarantee the deal.
So was it Boa or the crap they were forced to eat? Plus they hold about 15% of all deposits.