Bank of America No. 1 in market value, but will customers notice?

Charlotte ObserverFebruary 25, 2010 

Bank of America Corp. has climbed to No. 1 in total market capitalization among U.S. banks after a conversion of securities authorized by shareholders this week.

As of Thursday, the Charlotte-based bank had a total market value of about $160 billion, compared to about $157 billion for New York-based J.P. Morgan Chase & Co.

Market value is calculated by multiplying stock price by the number of shares. With the conversion of the securities, the bank now has nearly 10 billion in common shares outstanding, up from 8.7 billion. The securities were issued as part of the bank's repayment of Troubled Asset Relief Program loans last year.

The Charlotte bank can now claim the top spot among U.S. banks in assets, U.S. deposits and market cap.

Shareholders, of course, don't like when companies issue new shares because it dilutes the value of their holdings. A number of shareholders spoke out against the move at Tuesday's meeting.

McClatchy Washington Bureau is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

Commenting FAQs | Terms of Service