AMR, Bank of America: After-Hours Trading

NEW YORK ( TheStreet) -- Shares of AMR Corp. ( AMR), the parent company of American Airlines, continued to deal with a storm of volatility in Monday's after-hours session.

The stock dropped 33%, or 98 cents, to close regular trading at $1.98 with volume exceeding 76 million, good for fourth most-active issue on the New York Stock Exchange, behind Bank of America ( BAC) at 368 million, Sprint ( S) at 97 million, and General Electric ( GE) at 92 million. AMR's average daily volume is around 11.7 million.

The stock, whose session low of $1.75 was its worst level in more than 8 years, was briefly halted during the regular session after the volatility triggered a pause in the action.

In late trades, however, AMR shares caught a bit of a bounce, tacking on 15 cents, or 8%, to $2.05 on volume of nearly 600,000, according to Nasdaq.com.

The action in the stock on Monday was sparked by market worries that AMR may end up filing for bankruptcy protection. The shares took a sharp turn lower at midday, and a number of analysts quoted in the resulting coverage mentioned the prospect of a filing.

A story published Monday in The Wall Street Journal also discussed the company's financial condition, although it downplayed the prospect of a filing, saying the credit markets should remain open to AMR, even if the U.S. economy sinks into recession provided the downturn isn't too sharp or too long. That scenario would, of course, put many companies in a precarious position.

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AMR responded to TheStreet's request for a comment on Monday. Andrew Backover, a spokesperson with the airline, said in an emailed statement: "While we generally don't comment on AMR's share price performance, there is no company-driven news that has caused the volatility in AMR shares today."

Backover continued: "Regarding rumors and speculation about a court-supervised restructuring, that is certainly not our goal or our preference. We know we need to improve our results, and we are keenly focused as we work to achieve that."

The whole airline sector took it on the chin in Monday's regular session with United Continental ( UAL) closing down 11.7% at $17.11; Delta Airlines ( DAL) finished off 11.3% at $6.65; US Airways ( LCC) fell nearly 16% to settle at $4.63; and Southwest Airlines ( LUV) dropped 8.5% to close at $7.35.

Shares of Bank of America remained active after the closing bell, losing another 2 cents to $5.51 with another 7.5 million shares changing hands. The stock dropped 9.6% to $5.53 in regular trades, closing below $6 for the first time since the broad market hit its lows of the financial crisis in March 2009.

Bank of America is having difficulties on a number of fronts. The company announced plans to assess a monthly fee of $5 for debit card usage late last week that has resulted in a major backlash among its customers. On Friday, the bank's Web site went down, and despite company claims that it's working again, customers are still having difficulties, as evidenced by this message greeting visitors to the home page Monday afternoon.

There's also the bank's exposure to Europe if Greece does end up defaulting, a scenario that increased in likelihood on Monday when the country said it doesn't expect to be able to meet the year-end deficit reduction targets that its next round of bailout funds are contingent upon. That news sent the broad market into a tailspin on Monday with financial stocks leading the way lower.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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