Bank of America Corp shares fell as much as 6.2 percent in morning trading Tuesday amid fears that the largest U.S. bank by assets will need to raise capital to absorb billions in mortgage losses.

It's a death by a thousand cuts. Why would anyone want to own a stock that has a negative headline everyday? said Paul Miller, bank analyst with FBR Capital Markets.

Bank of America shares fell as low as $6.01 before rebounding slightly. But they were still down 4.5 percent to $6.11, outpacing a drop in the KBW Bank Index <.BKX> and a slight rise in the broader S&P 500 Index <.SPX>.

(Reporting by Joe Rauch; editing by John Wallace)