Larry Pesavento: “The next Lehman Brothers???
Bank of America has fallen in value by 90% since the 2007! It is the largest bank in the United States and is dangerously close to going below five dollars a share. Historically stocks a drop below five dollars a share usually go into bankruptcy better than 85% of the time. Bank of America would certainly be a bank that would be in the category of “too big to fail” by most people’s assessment. However, the protest groups on outcry Wall Street will make it difficult at least temporarily for legislatures to take over Bank of America. Citicorp the third-largest bank in the United States looks even worse as it has had a 10 to 1 reverse split and has dropped more than 95% of it’s value since 2007. Fortunately all the executives are still making their multimillion dollar salaries and all looks well in Camelot. Whether Bank of America will be the next Lehman Brothers remains to be seen. But if you’re Chartist, as I am, I would be very skeptical of owning either of these stocks.”