China Construction Bank Corp loses ties with Bank of America
BofA will sell its remaining 10.4 billion CCB shares to private investors this month.
Bloomberg noted that Bank of America expects after-tax gain of $1.8billion. And after its latest sale, BofA will only have 1% stake in CCB.
The lender plunged more than 50 percent this year in New York trading amid investor concern that it may sell shares to replenish capital after about $40 billion of expenses caused by faulty mortgages, said Bloomberg.
In a Bloombert TV interview, Frederick Cannon, director of research at New York-based KBW Inc. said “Bank of America continues to do a lot of things to fix their capital issue, but everything has reduced the capacity for the company to earn money.”
View the full report here.
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Tags: China Construction Bank Corp, Bank of America stake in CCB
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