Bloomberg reports that the stock value of the number two financial lender in the United States has fallen below $5 for the first time since the beginning of the recession in March of 2009.
At 4:15 pm Eastern Standard Time Bank of America fell 4.1 percentage points and was sitting at $4.99. In 2011 alone, Bank of America has fallen an amazing 63 percent.
In addition to the current economic uncertainty in Europe and the European stock market, this brings major concerns for Bank of America and other big lenders. Bank of America reportedly had $14.6 billion invested in Spain, Italy, Ireland, Portugal, and Greece. That was a $2.1 billion drop from the end of the second financial quarter.
Stock experts even say that some companies have rules that prohibit the purchasing of any stocks that are selling at less than $5 because of the risk involved.
Bank of America reports that they have approximately $363 billion in cash separate from the stock market and the value of their stocks. The company has also been unloading risky assets, many of which are associated with the weak European states that they are connected with.
At a grave time in terms of global economics, one of the biggest financial companies in the world is suffering big.