Veteran banking analyst Richard Bove said Bank of America Corp is not in danger of failure as the U.S. government is committed to keeping it in business, theflyonthewall.com reported Friday.

Shares of the bank rose 10 percent to $5.32 in trading before the bell, after reports that Ladenburg Thalmann's Bove thought the stock was a "strong buy" on cash flow and asset value basis.

Reuters could not immediately verify the report.

According to theflyonthewall.com, Bove said investors believe the bank is about to fail and be nationalized by the U.S. government.

Last month, Bove issued a note on Bank of America titled "Company of Opportunity." He had rated the stock "buy."