Bank of America (BAC) Slammed as Fed Asks Tough Questions of the Bank

Bank of America (NYSE: BAC) is sinking again in pre-open trade after the Wall Street Journal reported the company is the subject of greater fed scrutiny.

According to the Journal, "U.S. regulators have pushed Bank of America Corp. to show what measures it could take if conditions worsen for the Charlotte, N.C., lender, according to people familiar with the situation."

One option for the company would be to issue a separate class of shares tied to the performance of its Merrill Lynch securities unit

Shares are down over 6% to $7.40 and are closing in on Warren Buffett's warrant exercise price of $7.142857 per share. Shares were at $6.98 before the Buffett $5 billion investment news on August 25.

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