Capital worries hammer BofA

SHARES in embattled Bank of America slumped up to four per cent yesterday, leading the Dow Jones industrial average lower for a spell, after reports that the bank needs to raise up to $50bn of fresh capital to meet regulatory standards.

The US bank, which reports second-quarter results today, was said by analysts to require a massive cash injection to offset expenses and losses linked to bad mortgages.

Forecasters expect the firm to announce earnings per share of around $0.95 when the firm posts its figures before the US opening bell.