Stocks in the news: Bank of America, Brocade, CIT Group
Bank of America Corp. (BAC) is set to appoint an "emergency" CEO in case legal troubles force the controversial Kenneth Lewis to step down early. Both the SEC and New York Attorney General Andrew Cuomo are threatening legal action over the bank's failure to bonuses paid to executives at Merrill Lynch before its merger with Bank of America closed. CNBC said the appointment could come before the end of the month, and that the contingency plan was in development even before Lewis announced his retirement effective December 31.
Goldman Sachs Groups Inc. (GS) may earn as much as $1 billion if CIT Group Inc. (CIT) files for Chapter 11 bankruptcy and ends a $3 billion financing agreement. Shares of CIT have plummeted more than 80 percent over the past year as investors have worried about the company's viability.
Shares of Brocade Communications Systems Inc. (BRCD) rose in Europe after The Wall Street Journal reported that the largest maker of switches for data storage networks was considering a sale. Hewlett-Packard Co. (HPQ) and Oracle Corp. (ORCL) are seen as potential buyers.
In other news, Nouriel Roubini, whose comic book moniker "Dr. Doom" accurately described his pessimistic view of the economy, told Bloomberg News that stocks and commodities have risen too far, too fast and that they may drop in the coming months. Billionaire George Soros also recently sounded a pessimistic note, saying that the economic recovery in the U.S. will be "very slow."