Trying to contain the damage at Bank of America

It's not easy. The stock is down to $6.35 a share (that's actually up from earlier this morning), and concerns continue to be raised about the bank's solvency, even though B of A insists that it does not have to raise capital. Influential banking analyst Dick Bove says that deposits keep pouring in and the bank's assets can easily cover liabilities. From Barron's:

Bank of America has been sliding in recent weeks on concerns that its mortgage exposure is much worse than previously anticipated. Some investors and analysts have speculated that the bank could be forced to raise capital to keep up with billions of dollars in potential losses from disputes about mortgage securities and improper foreclosures; others argue that short-sellers are stoking the capital raise rumors in hopes of forcing the stock down further. Bove thinks arguments that BAC will have to raise capital are hyperbolic. "If [Bank of America] shrink[s] the balance sheet the way they are, and if you continue to show a profit the way they are, then there's no reason for the bank to have to go out and raise any capital whatsoever," he told Bloomberg TV.