BofA shares plunge to June 2009 low on mortgage woes

By Maria Aspan

NEW YORK (BestGrowthStock) – Bank of America Corp (BAC.N: ) shares hit their lowest point since June 2009 on Wednesday, after accusations that the company inappropriately handled more than $47 billion in mortgage bonds prompted some Wall Street analysts to downgrade its stock.

The bank’s shares fell to $11.21 on Wednesday morning, their lowest point in over a year, before recovering slightly. They were trading down 3.5 percent at $11.39 by late morning.

Analysts at Oppenheimer & Co and Stifel downgraded Bank of America to “perform” and “hold” respectively, after a group of investors on Tuesday accused it of inappropriately bundling mortgages into bonds. Analysts at Robert W. Baird and Citigroup trimmed their price targets for the bank.

On Tuesday, Bloomberg News reported that the New York Federal Reserve and bond fund Pimco were among the investor group.

Bank of America, which reported better-than-expected quarterly earnings on Tuesday, said it would fight being held responsible for investors’ losses.

(Reporting by Maria Aspan; Editing by Derek Caney)

BofA shares plunge to June 2009 low on mortgage woes