Bank of America quashes merger talk

Bank of America says merger speculation with JPMorgan is 'baseless.' Bank of America shares soar after steep decline.

Fred Prouser/Reuters
A security guard patrols outside a Bank of America office in Burbank, Calif., earlier this month. Bank of America is quashing speculation of a merger, saying that is doesn't make practical sense. The bank saw its shares soar 9 percent after losing more than a third of their value.

Bank of America is telling employees that speculation it's in talks to merge with rival JPMorgan Chase is "baseless," and "don't make practical sense."

The nation's largest bank sent the memo to employees on Tuesday after takeover talk swirled in the market when a few blogs reported that it might be acquired by JPMorgan Chase & Co. In the memo, Bank of AmericaCorp. also said the reports that it needs to raise at least $200 billion in capital to meet new regulatory capital requirements was also "wrong."

Bank of America shares are up 9 percent to $6.87 on Wednesday, after declining 36 percent this month.

of stories this month > Get unlimited stories
You've read of 5 free stories

Only $1 for your first month.

Get unlimited Monitor journalism.