Monday, August 8, 2011 – 09:45 a.m.

The stock of Bank of America (NYSE:BAC) hit the skids once again this morning, falling below the $7 per share level.

The company’s stock, already under pressure from a devastated economy and mortgage-related losses, took a further hit on news that BofA is being sued by insurance giant AIG (NYSE:AIG).

AIG is seeking $10 billion in damages for alleged securities fraud related to BofA issued mortgage-backed securities.

BofA stock was trading at $6.89 per share, down $1.28 or 15.67% in early afternoon trading on the NYSE.