Bank of America Slumps to Two-Year Low as Jobless Rate Weighs on Moynihan

Bank of America Corp. (BAC) hit a two-year low in New York trading on concern that a stalling U.S. job market will drive up costs from bad mortgages.
The biggest U.S. lender by assets declined 45 cents, or 4 percent, to $10.83 in New York Stock Exchange composite trading at 4:15 p.m. The bank hasn’t closed at a lower price since May 2009. The stock sold for more than $55 in 2006 before the financial crisis took hold.
Chief Executive Officer Brian T. Moynihan, 51, has assured investors that costs tied to defective mortgages and improper foreclosures can be absorbed without selling new stock to raise capital. His task may be harder after the U.S. jobless rate rose to 9.1 percent and employers added the fewest workers in eight months during May, meaning more unemployed people may fall behind on loans.