Bank of America (BOA) shares dropped below $10 for the first time in two years on Friday. The Charlotte-based bank company has been hit hard by bad mortgage loans and faulty foreclosures, leading to the company posting losses in six of the last 10 quarters.
In the last year the company's stock price has fallen 35 percent and is now the only one of the four largest banks to have a stock price in the single digits.
CEO Brian Moynihan has tried to rebuild capital while dealing with the mess that surrounds Countrywide Financial. Bank of America bought the company for six billion, but now has set aside approximately 30 billion dollars to deal with all of the issues surrounding foreclosures and mortgages. During the darkest hours of the company, its stock price dropped to $4.
The company reports its second quarter earnings on Tuesday. Both JPMorgan and Citigroup posted better than expected earnings numbers, but both companies saw their stock prices drop. Banks across the board saw prices drop, in part because analysts raised questions about higher than expected expenses during the Citigroup conference call.
This shows that even if the company does post good numbers on Tuesday, which isn't expected, its stock price could continue to fall.