Bank of America CEO buys more stock as the price dives
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Bank of America Corp. CEO Ken Lewis isn’t talking publicly about Wall Street’s latest thrashing of the bank’s stock on nationalization fears, but he may be hoping his actions speak louder than words.
Lewis stepped up to buy 200,000 shares of BofA on Wednesday as the stock hit an 18-year low, according to filings with the Securities and Exchange Commission. The purchases, at prices of $4.78 to $4.81 a share, boosted his personal direct holdings to 1.66 million shares.
Lewis last bought BofA stock Jan. 20, after the price had plunged for nine consecutive trading sessions. He paid $5.98 to $6.06 a share that day for 200,000 shares in all.
He’s still underwater on the Jan. 20 purchases: BofA shares closed today at $4.84, up 14 cents, after plummeting to a 25-year low of $3.77 early in the session.
As noted in this post earlier today, investors have been fleeing BofA’s stock this year on fears that the government may have to further bolster the bank’s finances, in effect nationalizing the company and wiping out common shareholders.
But the stock rebounded from its lows today after Sen. Christopher Dodd (D-Conn.), the chairman of the Senate Banking Committee, told reporters in Washington that he was ‘not for nationalization’ of BofA.
On Monday, Treasury Secretary Timothy F. Geithner is expected to announce the Obama administration’s plans for the next phase of the financial-system bailout, which may shed more light on BofA’s prospects for remaining independent.
Several BofA directors also bought shares either Wednesday or today, SEC filings show. So did Brian Moynihan, who last month replaced the ousted John Thain as head of the firm’s global banking unit.
Moynihan bought 20,000 shares at $3.89 today, lifting his holdings to 333,607 shares.
-- Tom Petruno