February 06, 2009 at 14:44 PM EST
BofA up 20 pct after analyst endorsement, CEO share purchase
Bank of America shares rose 20 percent Friday morning after a research note from analyst Richard Bove may have assuaged investors' fears that the bank is in danger of failure and nationalization.
(IBTimes) -- 02/06/2009 --

Bank of America shares rose 20 percent Friday morning after a research note from analyst Richard Bove may have assuaged investors' fears that the bank is in danger of failure and nationalization.

Bove, an analyst from Ladenburg Thalmann said those fears "make no sense whatsoever," and rated Bank of America's shares as a "strong buy," on Thursday according to Reuters.

Shares of Bank of America were trading 20.04 percent up or 97 cents to $5.81 each by 10:52 a.m. EST in the New York stock Exchange Friday.

Also, BofA's Chief Executive Officer Ken Lewis purchased an additional 200,000 shares of his own company for $958,340 on Wednesday, according to a filing with the Securities and Exchange Commission the day after.

Lewis also told its employees in a memo that during a meeting on Jan 28 the board of directors of BofA had "unanimously endorsed our business model, strategic direction and the team," according to Reuters.

Analysts interpreted Lewis' move as an incentive to persuade investors, directors and employees on his strong determination and capability to take the bank through the current economic crisis.

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