[classicman]

An interesting turn of events

Bank of America Soars as Lewis, Directors Buy Shares

Jan. 21 (Bloomberg) -- Bank of America Corp., the biggest U.S. lender by assets, gained 31 percent in New York trading after Chief Executive Officer Kenneth Lewis and five directors bought more than 500,000 shares for at least $3 million.

Lewis bought 200,000 shares of the bank at prices ranging from $5.98 to $6.06 yesterday, while director Robert Tillman also bought 200,000 shares for $5.77 to $5.78, according to a filing today. Temple Sloan Jr., lead director of the Charlotte, North Carolina-based bank, bought 41,800 shares. Buyers also included William Barnet III, Jacquelyn Ward and John Collins.

Purchases by insiders typically are seen as a vote of confidence, and the filing helped Bank of America stock regain some of the ground lost this week. Jamie Dimon, CEO of JPMorgan Chase & Co., also bought 500,000 shares of his bank valued at $11.5 million, according to a separate filing. Lewis bought his stake as the bank prepared to dismiss about 1,000 people, part of a reduction that may ultimately affect 35,000 jobs.

Bank of America shares advanced $1.58 to $6.68 at 4:15 p.m. in New York Stock Exchange composite trading. Earlier in the session, the shares reached $6.88. The company fell 29 percent yesterday to $5.10, a two-decade low, after Paul Miller, analyst at Friedman Billings Ramsey Group Inc., said the bank needed to raise $80 billion of capital to reach adequate levels. JPMorgan added 25 percent today to $22.63.

Whats this all about? Anyone?