New York- Bank of America and Wells Fargo stock has continued to drop on foreclosure worries. 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. 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.
Bank of America Stock is currently down 1.7% and Wells Fargo stock is down another 1.5% after both stocks dropped 5% yesterday. To put this into market capitalization perspective Wells Fargo has lost 7.7 billion dollars and Bank of America has lost 9 billion dollars of value. These numbers appear to be disproportionate to the amount J.P. Morgan has set aside for future claims regarding the foreclosure amounts.
It just proves time and time again when anything is uncertain the Wall Street traders short or sell even when it doesn't make any logical sense.
No comments:
Post a Comment