Tuesday, August 23, 2011

Bank of America Goes After Blogger

New York Magazine writes: "The bank's shares are down to $6.01 today and the company has lost more than half of its market value on the year, but when the former equity analyst turned website CEO Henry Blodget estimated their capital shortfall at $100 billion to $200 billion, the bank lashed out. "Mr. Blodget is making 'exaggerated and unwarranted claims,' which is what the Securities and Exchange Commission stated publicly when he was permanently banned from the securities industry in 2003," they said in a statement. In response, Blodget sort of shrugged and pointed to the response of Rich Eckert of Second Derivative Research, who wrote to his clients, "the personal nature of the response and the bank's defensive posture regarding its individual exposures only ratifies my belief that something is seriously amiss." And then, like any good online writer, Blodget closed with a zing: "Bank of America only fell 2% today. That's an improvement!" We're awaiting the bank's angry Internet comment….

http://nymag.com/daily/intel/2011/08/bank_of_america_goes_after_blo.html

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