Large Insider Purchase Shines Hope on Financial Company
January 25, 2010 6:56 PM
Dr. Paul Jones Jr., former chairman and chief executive oficer officer of Compass Bancshares, bought 35 thousand shares on Thursday of Bank of America (BAC) for $545 thousand dollars despite the unclear future of what federal investment regulations may be on the banking sector's horizon.
Already hints of new laws are affecting the company.
Recently, President Barack Obama's proposed new regulations to limit risk in the banking system as the company integrates Merrill Lynch in its evolving business model and resulting in a share downfall of 6%.
However, recently shares did rise 1.7 percent and is improving in credit quality.
Jonathan Moreland of InsiderInsights.com said the high purchase from an executive insider shows promise for Bank of America (BAC); not to mention the fact that no shares have been sold off by anyone within the company despite the rollercoaster it has been on.
