Breaking News: Bank of America
After hours, the Fast Money desk reported shares of Bank of America were moving sharply lower. What's going on?
Karen Finerman believed the slide stemmed from a late move to issue more stock – at $10. Finerman also speculated that this raise could be the end of BAC’s issuance of common stock to raise capital.
Later in the broadcast, CNBC's David Faber confirmed Finerman's speculation. He said BAC is pricing 825 million shares at $10/share. And the company may also embark on an exchange of some of its preferred for common, as well.
" A lot of this came about as a result of reverse inquiries from investors asking if the company would be willing to sell shares -- telling them they would be willing buyers," explains Faber.
Bank of America had no comment.
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Trader disclosure: On May 19th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (AAPL), (WFC), (AGU), (SKF), (SDS), (F); Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Seymour Owns (AAPL), (BAC), (BBY), (BX), (FCX), (EEM), (INFY), (PBR), (RIO), (TTM); Finerman Owns (RIG); Finerman's Firm Owns (PBR), (RIG), (WMT); Finerman's Firm Owns (BAC) Preferred, (WFC) Preferred; Finerman's Firm Is Short (WFC), (BAC)
CNBC.com with wires