Thread: Bank of America down even more?

This article says

Bank of America Corp. reported its third-quarter profits fell 68 percent.

http://biz.yahoo.com/ap/081007/wall_street.html

Can someone find us the best article about this possible so we can add it to the homepage and to the Bank of America Boycott site please?

W

Bank of America profits plunge 68%
Banking giant reports - more than a week in advance - worse-than-expected earnings. Dividend halved and $10B stock sale announced.

By David Ellis, CNNMoney.com staff writer
Last Updated: October 6, 2008: 7:34 PM ET

AMERICA'S MONEY CRISIS
Bush: 'We're going to come through'
Economy vs. inflation: Fed saw equal risk
Pensions lose $2 trillion
Bernanke's speech on economic conditions
Bernanke: Economic outlook weaker
Fuld takes full responsibility

More Videos
Quick Vote
What is your current investment strategy?
Looking for safetyHolding steadyBuying stocks or View results
NEW YORK (CNNMoney.com) -- Bank of America proved it was not invulnerable to the credit crunch as it reported a steep decline in earnings on Monday, and announced plans to bulk up on capital by slashing its dividend in half and raising $10 billion through a stock sale.

Making the surprise announcement just after the closing bell, the Charlotte, N.C.-based bank said its third-quarter net income fell to $1.18 billion, or 15 cents a share, down 68% from $3.7 billion, or 82 cents a share, a year ago.

That was far worse than Wall Street's consensus forecasts of a net profit of $3.22 billion, or 62 cents a share.

Bank of America (BAC, Fortune 500) shares, which fell 6.5% during the session Monday, tumbled more than 9% in after-hours trading on the news.

Fresh off its recent acquisition of Merrill Lynch, Bank of America also said it planned to raise $10 billion in capital through a common stock sale and that it will cut its dividend to 32 cents from 64 cents in recent quarters.

Kenneth Lewis, Bank of America's chairman and chief executive officer, told investors in a conference call the move would help insulate the company in the current market environment, which has been marked by the disappearance of several major financial institutions in recent weeks.

"We thought it was prudent," Lewis said.

In addition to Bank of America's purchase of Merrill Lynch, Lehman Brothers has filed for bankruptcy, JPMorgan Chase (JPM, Fortune 500) acquired failed savings and loan Washington Mutual and Wachovia (WB, Fortune 500) is in the process of being bought by either Citigroup (C, Fortune 500) or Wells Fargo (WFC, Fortune 500). Those two banks are battling in court over the rights to buy Wachovia.

Lewis reserved some of the blame for the dismal quarterly results for higher credit costs in such areas as its mortgage and credit businesses as more consumers found it difficult to repay their loans.

All told, Bank of America said it set aside $6.45 billion for credit-related losses, more than triple during the same period just a year ago.

Exacerbating that pain was a charge related to buying back auction-rate securities from clients, a $320 million hit from the company's ownership of preferred stock of Fannie Mae and Freddie Mac and more than $1.2 billion in writedowns related to mortgage-backed securities and leveraged loans.

Bank of America execs said they experienced some encouraging trends including new client relationships and a flood of new deposits as both consumers and commercial account holders looked for a safe haven to park their cash. Over the past 3 months, the company gained $21 billion in new deposits - almost three times the industry average.

But those highlights were tempered by a dour outlook. Lewis, who has served as CEO since 2001, warned that he expected loan losses to peak towards the latter end of 2009 and that the company would have to continue to set aside money for bad loans through the coming year.

As a result, Lewis acknowledged that consumers may find little relief in the months ahead when it comes to securing credit.

"That is going to continue for some period of time," he said.

The results, which was originally slated to be released on Oct. 20, come just as the company announced a massive $8.4 billion foreclosure prevention effort.

As part of a legal settlement with 11 state attorneys general who had sued the troubled mortgage lender Countrywide Financial, Bank of America said it would cut monthly housing payments, a move that is expected to keep as many as 400,000 borrowers across the country.

In January, Bank of America announced plans to acquire Countrywide and completed its purchase in June.

First Published: October 6, 2008: 4:41 PM ET

Bank of America to slash mortgage payments

Europe: The new Wall Street?

A cruel September for bank CEOs

http://money.cnn.com/2008/10/06/news/co ... 2008100619

I cleaned this up a little, W., but if you use it on the Homepage, you may want to clean it up a little more.

Here is a similar one:
~~~

Tuesday, October 7, 2008 - 2:37 PM EDT
Bank of America 3Q profits fall 68%
Tampa Bay Business Journal - by Mark Calvey
Orlando Business Journal Contributing Writer

Bank of America reported a 68 percent drop in third-quarter earnings and has halved its dividend to 32 cents per share.

The Charlotte, N.C.-based bank (NYSE:BAC) also will seek to raise $10 billion in a common stock offering.

“These are the most difficult times for financial institutions that I have experienced in my 39 years in banking,â€

Just posting a snippet from the article.
~~~

Bank of America, Pfizer, Safeway among big movers
21 minutes ago

NEW YORK (AP) — Stocks that moved substantially or traded heavily Tuesday on the New York Stock Exchange and Nasdaq Stock Market:

NYSE

Bank of America Corp., down $8.45 at $23.77

Third-quarter profit fell 68 percent, and the company cut its dividend and said it will raise $10 billion by issuing common stock.

http://ap.google.com

I am so glad I left BOA when we realized how they were catering to illegals. We should all leave the big banks that do that. I am w/a local community bank now but fear they will be bought by bigger greedy banks.

I am glad they are losing their profits but I fear they will just be the next big bailout in washington that we will end up having to bail out too.

ACCORDING TO YAHOO FINANCE BANK OF AMERICA STOCK FELL 25% TODAY. THAT IS TODAY. DOW JONES DOWN 504 TODAY.

ACTUALLY NOW THAT I WENT TO LOOK AT IT AGAIN....IT FELL FURTHER.

BANK OF AMERICA DOWN 26.23% TODAY.

http://finance.yahoo.com/q?s=BAC

Bank of America will also be "rescuing" some 125,000 subprime mortgage holders..........illegal aliens? ........in CA:


Free Republic
Browse · Search News/Activism
Topics · Post Article


--------------------------------------------------------------------------------

Skip to comments.

Bank of America announces rescue plan for Countrywide borrowers
Mercury News ^ | 10/6/08 | Pete Carey

Posted on Monday, October 06, 2008 8:10:26 PM by NormsRevenge

A massive $8.4 billion homeowner rescue plan announced Monday by the Bank of America will provide some relief for an estimated 125,000 Californians who are having trouble making payments on sub-prime loans and other risky mortgages from Countrywide Home Loans.

Bank of America bought Countrywide for $4 billion July 1 after the Calabasas-based home loan giant, among the largest sub-prime lenders in the state, collapsed under the weight of mounting defaults and foreclosures.

The bank's "Home Ownership Retention Program for Countrywide Customers'' was devised by California and 10 other states to settle predatory lending lawsuits filed against Countrywide. The plan could also set a precedent for other banks whose books are weighed down by defaulting mortgages.

"This is going to help some families,'' said California Attorney General Jerry Brown, "but the overall economy is in hands of God at this point.'' Brown helped lead the settlement negotiations.

The program allocates up to $3.5 billion to help California Countrywide borrowers lower their interest rates, a figure that assumes every borrower participates. Nearly 400,000 customers of Countrywide will be eligible nationwide.

The bank said the program is for borrowers who are, or who are likely to fall seriously behind on their loans as the result of loan features such as interest rate resets or payment changes. For some borrowers, interest rates could go as low as 2.5 percent. The program includes suspension of foreclosures, reduced interest payments and for select borrowers, reduction of principal balances.



www.freerepublic.com/focus/f-news/2099263/posts -

I understand that people are po'd about BOA giving loans to illegal aliens. But I dont want to see any bank fail. It hurts alot of Americans too.