NEW YORK - Shares of the Charlotte, North Carolina based bank continued to tumble following it quarter three results, where the bank recognized an adjusted $3.1 billion of profit or 27 cents a share. When the bank posted its results its shares traded at $12.35, today they trade at 11.36, which is a decline of 8%. The company has increased its common equity ratio to 8.5%, which is well above the minimum that will be required by Basel regulators.
The shares have tumbled as they have been hit by analyst downgrades and fear. In its conference call the bank said it added $370 million to its provisions for the foreclosure scandal. The current scandal sweeping the nation, involves bank employees foreclosing on homes without necessary documentation. This has surrounded the bank with a shroud of uncertainty as investors have taken the approach of sell first ask later. Despite the weak share price results, the company has improved its financial strength over the last year.
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