Bank of America stock took another hit Monday, closing 7.89% down in New York trading.
The closing stock price of $6.42 was the lowest BofA has traded since March 2009, and it has now lost 52% of its market value this year.
Bloomberg reports that the bank's stock took its latest beating after it emerged that it will keep at least half of its $20bn stake in China Construction Bank. The news agency quotes Charles Peabody of Portales Partners LLC, who said: 'People like me thought they were going to unload the whole thing to help build their capital. It means the process of getting to their Basel 3 capital goals could be more elongated, or that they will be more dependent upon increasing their disposition of non-core assets'.
And CNBC reports that Jeffrey Sonnenfield, senior associate dean of the Yale School of Management, has likened BofA to Hewlett Packard, as both company CEOs have inherited problems from their predecessors, had 'horrible boards', 'burning platform issues', and operate in highly fluid industries.
Not everyone is downbeat on BofA, however, as the Korea Investment Corp. has come out and confirmed that it has snapped up another $78m in the bank's stock in 7 seperate purchases since the beginning of the year. The fund clearly sees value at existing stock levels.
The bank's stock was down a further 4% in early trading Tuesday.