20
October
US markets slump on China rate shock, BoA mortgage fears
20 October 2010 The Telegraph
Bank of America slid 4.4pc after a CNBC report that a consortium of eight investment firms, including PIMCO, BlackRock and the Federal Reserve Bank of New York, were seeking to make it repurchase loans packaged into $47bn of bonds.
“Wall Street is measuring in real time lenders’ loan losses from the mortgage crisis,” Chad Morganlander, a money manager at Stifel Nicolaus, told Bloomberg. “This additional overhang from the housing debacle is going to keep the financial stocks at bay for a long period of time.”
