Wikileaks, a famous name that almost every politician hates, is now making itself a name in the financial sector. Apparently, Wikileaks claim having the hard disk of a BAC executive. According to Wikileaks, the hard disk has about 5 GB of “classified” information revealing the unethical practices by the Bank of America. Due to the ingenuity of the Wikileaks team, the stock is now being hammered and is trading at the $11 level (down almost 3% from yesterday). Wikileaks managed to make the whole of Wall Street an instant enemy. I’m sure though that someone shorted the stock prior to the Wikileaks announcement.
As one Forbes writer said, BAC’s stock price is at an absurd level, and even lower than the cash on the current banks’ balance sheet.
The Bank of America is a very strong bank, it got out from a huge storm, neither Wikileaks nor any other gossip website (publishing information, that may or may not be true, or may or may not be altered), can bring it down.
Stupid, fearful investors are now fleeing the stock, good for you, but when there will be a time next year when all these investors will be running to buy the stock at the $25 level.
Time will heal, and time will tell.