Advocate Group Looking to Break Up BofA... (BAC)
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Price: $58.30 -2.61%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.1%
EPS Growth %: +24.7%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.1%
EPS Growth %: +24.7%
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Shares of Bank of America (NYSE: BAC) saw some early pressure Wednesday following reports a large group of consumer advocates and other professionals want the end of "too big to fail" banks.
Starting with a split of BofA.
According to Reuters, a Public Citizen-led group plans to file a petition with the Federal Reserve to cut the bank into smaller divisions. This might initially seem unlikely, but new regulation under the 2010 Dodd-Frank act allows the Financial Stability Oversight Council to take such action.
The group has already gathered signatures from two dozen professors and advocate groups.
Following the financial mess of 2008, the group says little has been done to regulate and shrink the size of large banks, which continue to be a "grave threat to U.S. financial stability," according to the petition.
BofA has had a tough time since the meltdown with continuous losses coming from ailing mortgage arm Countrywide, acquired in 2008. Shares of BofA plummeted 58 percent in 2011 following uncertainty in Europe, making it the worst performing Dow Jones equity for the year.
After opening rather sharply lower, BofA shares last traded at $7.34, up 0.6 percent from Tuesday's close.
Starting with a split of BofA.
According to Reuters, a Public Citizen-led group plans to file a petition with the Federal Reserve to cut the bank into smaller divisions. This might initially seem unlikely, but new regulation under the 2010 Dodd-Frank act allows the Financial Stability Oversight Council to take such action.
The group has already gathered signatures from two dozen professors and advocate groups.
Following the financial mess of 2008, the group says little has been done to regulate and shrink the size of large banks, which continue to be a "grave threat to U.S. financial stability," according to the petition.
BofA has had a tough time since the meltdown with continuous losses coming from ailing mortgage arm Countrywide, acquired in 2008. Shares of BofA plummeted 58 percent in 2011 following uncertainty in Europe, making it the worst performing Dow Jones equity for the year.
After opening rather sharply lower, BofA shares last traded at $7.34, up 0.6 percent from Tuesday's close.
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