Question by canada: What is the most likely scenario for Bank of America’s future?
1. Will they go “bankrupt” or into “receivership”?
2. Will they be bought out (and if they are, what happens to shareholders stocks, do they go to zero, or what?)
3. Will they bounce back from their current share price of about $ 5 to be like Citigroup, which used to be $ 4, and now is $ 25?
Answer by John W
Selling or renting out houses.
If they go under, their assets and accounts would just be bought by the other banks so they would just become Chase or something. Shareholders will be the ones that lose out as regulators will shut them down while there’s still enough to cover the deposits, shareholders may wind up with shares in a worthless holding company like the old shareholders of Enron, Blockbusters and GM did.
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