GOIH Capital Markets: BAC down sharply

Bank of America (BAC) is down sharply after the open. BAC is down trading at $44.32 from opening at $46.00. After BAC reported the loss from the investment banking division the stock has traded down consistently.

Moreover, because BAC has jettisoned the IB profits and is at the Fed mandated limit for deposits of 10%, BAC cannot grow organically and revenue will suffer with the loss of the investment banking revenue. We do not see BAC recovering in the short unless they bite the bullet and acquire a major profit center to increase their earnings.

Etrade Financial (ETFC) has dropped below $ 10.00....our models predict the end is nearing for ETFC now the stock price has dropped below $10.00.

Citigroup (c) is down again today after the worry concerning its balance sheet and capital reserves.

The jobs numbers was released today and the consensus is that the numbers are not accurate and manipulated to create a psychological cushion for investor sentiment to avoid panic in the market.

We will report back later today.