Falling profits at Bank of America(BAC Quote) and a dilutive equity offering at National City(NCC Quote) dragged down many bank stocks Monday.
The Charlotte, N.C.-based bank, which is set to acquire mortgage lender Countrywide Financial (CFC Quote) in the third quarter, said profit fell 77% to or $1.21 billion for the first quarter, vs. $5.26 billion in the year-ago period. Trading losses and an increase in reserves for problem loans led to the slide. BofA stock fell 2.5% to close at $37.61, a loss of 95 cents, while Countrywide slipped 2.5% to $5.54.
Cleveland-based Nat City said it had secured a $7 billion cash infusion, but also cleaved its dividend and reported a $171 million first quarter loss. The bank's stock dove 27.6% to $6.03 as investors realized the dilutive effect that the new equity would have on the common shares. ...
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