Shares of Bank of America dipped 13 percent in mid-morning trading today after it surprised analysts Monday evening by reporting an unexpectedly large 68 percent decline in third quarter earnings. It also cut its dividend in half to 32 cents. The stock was trading down $4.30 at $27.90 at 11 a.m.Â
The Charlotte, N.C.- based banking giant, which ranks first in Connecticut in banking deposits and is in the process of merging with Merrill Lynch, also announced plans to raise $10 billion through the sale of common stock to beef up its balance sheet.
On Monday, Bank of America announced its third-quarter profit was $1.18 billion, or 15 cents per share. Analysts polled by Thomson Reuters, on average, had forecast earnings of 62 cents per share for the quarter.
