Bank of America shares down 4.4% in afternoon sell off
Shares of Bank of America (BAC) took a nose dive Tuesday afternoon, after the banking giant reported a $7.3 billion loss before the market opened and some investors of Countrywide mortgage-backed securities took steps to get the company to repurchase failed loans. Volume of BofA shares traded Tuesday was nearly 572.2 million. On an average day, about 178 million Bank of America shares trade hands. The bank's third-quarter results were hindered by a $10.3 billion goodwill-impairment charge, as required under the Dodd-Frank act. Meanwhile, a group of investors holding more than 25% of the voting rights of more than $47 billion of Countrywide RMBS sent the company a notice of nonperformance, which gives Countrywide 60 days to fix the alleged problems before investors declare a default. And now late Tuesday afternoon, the Federal Reserve Bank of New York announced it wants Bank of America to repurchase the failed loans. Write to Jason Philyaw.