Financials in Red on Bank of America Double Dip Worries

Financials in Red on Bank of America Double Dip Worries
New York (MarketWatch) – Financial stocks deepened losses Friday afternoon on investor concern about the double-dip recession, overriding a better than expected earnings results and Goldman Sachs Group Inc-The settlement with the Securities and Exchange Commission. Bank of America Corp. / Quotes/comstock/13 *: bac / applications / nls / bac (BAC 14,13, -1,26, -8,19%), resulted in a slide, down about 8% after reporting second quarter revenues 27 cents share, or $ 3.1 billion. Bank cited lower credit costs and selling noncore assets, offset by decreased commercial and mortgage banking income for profits. Read
“People are fixated on top-line growth and macro situation right now,” said Alan Villalon, analyst at First American Funds, pointing loan fall 2.1% from the first quarter. “It shows customers are still concerned about taking on leverage, and investors are worried that if there is no credit growth, there is no expansion and no recovery.
However, Villalon said the shares are undervalued, trading at a price-to-book level, as when the bank was to raise capital after taking Trouble Asset Relief Program funds in May 2009, and also during the crisis in November 2008.