One of the most mesmerizing aspects of the market rout of the last week is the decline in Bank of America's stock price. It fell a stunning 20% yesterday, and even with a strong rebound today, it closed over 22% below its level of two week ago.
That puts it well below half of the book value, which is a serious vote of no confidence.
An even more troubling sign is that its credit default swaps, which strongly influence the bank's cost of raising new funds in the bond market, have also shown considerable decay.
CHART: Bank Of America Stock Has Fallen 50% In A Month