Bank of America Drops To $5.01; Lowest Since March 2009

Tyler Durden's picture

As of minutes ago, BAC stock hit the nearly 3 year low value of $5.01 which immediately set off algorithmic defense programs, because as has been explained previously, should the stock trade under $5.00 during regular hours, instead of the After Hours session, when it hit $4.90 a few weeks ago, it will most likely set off numerous selling programs from plain vanilla funds which despite what pundits claims, have a hard floor of $5.00 (these are the same "pundits" who believe a downgrade of the EuropeAAAn club will have no impact on asset vallue) for held stocks.The result would be unpredictable so it is better to eat losses on algo all bid programs than to find out what would happen when the stock has  $4 handle.

As a reminder, here are the 20 biggest losers should BAC enter freefall mode:

Source: CapitalIQ

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GOSPLAN HERO's picture

A very bad penny stock.

Pladizow's picture

Bend Over America!

The new $4.99 BOA Not So-Happy Meal comes with a free prostate exam!

GOSPLAN HERO's picture

Spend $5 at SUBWAY ... a far better deal than BAC.

iDealMeat's picture

If I read the recent comments right and it is the case that creditor banks can "seize" re-hypothecated capital at debtor's BK. I expect a lot of institutional endowments to quickly leave the house of BAC and C..

bankrun bitchez

Manthong's picture

If Buffett buys a billion today, he can get his average cost per share under $7.50.

Azannoth's picture

Time for BAC to do a Reverse Merger with a Company trading above 10$

TruthInSunshine's picture

Warren 'Thanks Uncle Sucker Sam' Buffett is on the phone right now with Obama's chief of staff, prepared to 'pledge' more money for BAC, but only if the taxpayer-guarantee-against-any-losses-whatsoever plan usually extended to Warren is sweetened to included "and a minimum of 25% profit, aka give me first secured status on the good stuff that BAC has."

The highly significant back story that cnBSc is working on, via Becky B. Quick, is whether Warren is negotiating these terms in the bathtub.

Caviar Emptor's picture

You got it! Warren to buy BAC preferred at $1.00. Fed rescue to kick in 10 minutes later. 

vast-dom's picture

R u serious? This is fucking ultra-bullish son!

fourchan's picture

Just pull a citi, 10:1 reverse split coming problem.

Alien Invader's picture

Yes exactly, that should buy them another 2 years. Citi is really a $2.50 stock, these algos appear pretty easy to fool. That being said, it's almost time for ShitiCorp to have another reverse 10:1 split.


On another note, notice how all these banks own each other's stocks. This reminds me of Japan, where all the corporations are interlinkied, and that hasn't worked out too well either. Get your shorts on!!!

CPL's picture

It is isn't it.


A metric fuck tonne of empty houses that are rotting in inventory, no customers, investment section with a terrible track record and the upper management still collects bonuses.


This POS had sell written all over it 4 years ago.

chunga's picture

Getting borderline spammy with this hamlet link but I laugh my bells off every time I read it.

tOO BiG To fAiL LOan MOdIFiCATioN FOrm r.1.A.002.B.XXXX

What a complete waste...

Mic check: Shame

MiddleageThinninghair's picture

I've been watching BAC on stockcharts for a little while now.  The price change will fluctuate between -0.16 and -0.17 but the actual price remains fixed at $5.03. 

DeadFred's picture

I had to reload my program because BAC data stopped dead. Just BAC. Maybe random, but curious.

ucsbcanuck's picture

Noticed the same myself. Now it's working again at 5.03

JLee2027's picture

Here comes the Fed, pumping the stock back up just like last time.

Al Huxley's picture

No, a bad blue chip stock, a great penny stock, since it has all the attributes that penny stocks have, eg - pie in the sky business model that will require a miracle to actually happen, bullshit buy recommendations by conflicted, self-serving analysts, a book value near or below zero, etc...

Ruffcut's picture

"five dollar... five dollar foot long.... five dollar foot long dog turd."

I hope you don't step in it.

briansdad's picture

I ask with some trepidation, but if the situation is so dire, why doesn't BAC put Countrywide into Bankruptcy Court? 

TruthInSunshine's picture

I"m not sure and haven't researched the issue, but I will admittedly throw a SWAG out there that it has something to do with the fact that BAC was essentially forced to swallow Countrywide (and Merrill) as part of the Hank 'Tanks In The Street Unless We Help Goldman Sachs & JP Morgan Grow Into Robber Baron Status' Paulson recovery pact, formed and executed in conjunction with Timmmay.

transaccountin's picture

Paging Dick Bove stat! Buy Buy Buy Dickie!

-What Problems? Bank Of America Is Fine, Bove Says

Tsar Pointless's picture

Two Maginot lines set for the PPT today.

BAC @ $5.00

S&P @ 1220

catacl1sm's picture

As I'm sure you know, the Maginot line was utterly useless.

achmachat's picture

not utterly useless!

it has a very nice ring to it.

gmrpeabody's picture

It was a great reverse barometer for opposing armies.

Sudden Debt's picture


I still make a good tourist attraction....



XenoFrog's picture

Sorry for the history smackdown.

The Maginot Line was designed to force Germany to attack through the low countries. It was a total success. It was France's military that was supposed to stop Germany's advance which failed in the face of the new Blitzkrieg tactics.

Ghordius's picture

I thought the route through the Ardennes played a role, too?

And the fact that the Polish Invasion gave the Germans some very fresh experience.

But I agree, had the French deployed better and used their tanks in a modern way they could have stopped them...

HelluvaEngineer's picture

I think you forgot Gold above $1600.

Al Huxley's picture

Gold BELOW 1600 - keep in mind who's defending the lines in the sand.

Dcheeth2's picture

The Rubicon is more apt, I think.

Jlmadyson's picture

Here we go paw paw!

Odin's picture

This is seriously the rally? I mean I knew the market was bullshit these days but this is insanity...

catacl1sm's picture

Off with its head!

slaughterer's picture

Sloppy block selling.   I bought.    I dare anyone here to short BAC in volume under $5.10.   

achmachat's picture

my humble opinion: if the Rothschild bank's share drops to 5 USD, it means that the Rothschilds wanted it to drop to 5 USD.

now the question is: what is the endgame?

firstdivision's picture

It will also set off the buy algos at FRBNY and Paulson and Co.  Additionally, expect Bove to issue a "super-duper stong buy with leverage" recommendation.

scatterbrains's picture

Bloomberg radio was pumping this pig during the top of the am rush hour via Thomas Brown.. not to be confused with the very focused funk master Tom Browne.

virgilcaine's picture

BAC stock as bouyant as concrete.