Tags: BofA | bank | america | Drops

Bank of America Drops Below $10 as Cost of Bad Mortgages Rises

Friday, 15 Jul 2011 03:52 PM

Bank of America Corp., the biggest U.S. lender by assets, fell below $10 a share in New York trading today as concern mounted about the company’s ability to restore profit.

The lender’s shares dropped 9 cents, or 0.9 percent, to $9.98 a share as of 1:53 p.m. in New York Stock Exchange composite trading.

Bank of America traded for less than $10 back in May 2009, when it was emerging from the worst depths of the financial crisis. Mounting costs from bad mortgages and faulty foreclosures at the Charlotte, North Carolina-based company led to losses in six of the past 10 quarters. The company expects to formally report quarterly results next week.

Chief Executive Officer Brian T. Moynihan has been rebuilding capital and has vowed to reduce risk in Bank of America’s holdings. He’s spent or earmarked at least $30 billion to quell losses ties to the company’s home lending and foreclosures.

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