Bank of America stocks tumbled twenty percent on Monday as investors responded in part to a $10 billion lawsuit that the insurance coverage corporation American International Group brought in opposition to the company.
The dramatic single-day fall had been similar to market plunges throughout the financial crisis of 2008, and stood out even amongst a market-wide spate of sell-offs which left the Dow Jones industrial average more than 600 points down on the day.
BofA closed at $6.51 on Monday, a 20.32 percent drop from the opening bell, following a day of fast stock declines that observed the Dow shed 634 points. The Dow closed at 10,809 right after dipping below 11,000 for the very first time since November 2010, making Monday the actual sixth-worst trading day in Dow history.
Somewhere else in the market, the S&P 500 Index fell by 6.66 % and the NASDAQ Composite closed at 6.9 % lower.
On Monday, AIG announced that it was suing Bank of America for more than $10 billion, claiming that BofA, and its acquisitions Merrill Lynch as well as Countrywide Financial, participated in