Bank of America Corporation (NYSE:BAC) hit a fresh 52-week low on Friday as worried that the foreclosure crisis may eat into BAC profit. The scandal involves foreclosures on houses by the banks without the necessary documentation and the foreclosure of houses using robo-signers which is when workers involved in forclosures indicate the documentation is present when it is not. J.P Morgan the second largest bank in the U.S. already took a charge in their third quarter report relating to the mortgage foreclosure scandal. Despite this charge JPM posted $4.4 billion of profit. Investors are afraid that Wells Fargo will have to report a similar charge. It has been reported Xee Moua a vice president of loan documentation for Wells Fargo, the second-largest US mortgage servicer, had pushed through 500 foreclosures a day. The financial sector has continued to be beaten down since mid April. The stock reached a low of $11.74 today, valuing the company's market capitalization close to Citigroup levels. Citigroup currently has a market capitalization of only $6 billion dollars less than BAC despite having less assets and a lower book value.
To see the BAC report Click Here
To see the Wells Fargo Report Click Here
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