Bank of america's shares fell a bit, early on August 20th, before an unexpected bounce in the afternoon left them up for the day. The jump would be of little moment but for the event that provoked it-a report that it was, as The Economist went to press, on the verge of agreeing to pay a staggering $17 billion to resolve claims from the financial crisis tied to the sale of mortgage-backed securities that defaulted. The penalty amounted to more than 10% of the company's market capitalisation. It probably stemmed in large part from actions taken by another firm, Countrywide, a rival it took over during the financial crisis and whose business was tied to the government-backed and government-influenced housing-finance agencies. The government eagerly blessed the union, much as it had encouraged JPMorgan Chase to take over struggling rivals which landed it, eventually, with similarly whopping fines.
展开▼
