Bank of America's Profit Drops 77 Percent

AirborneSapper7

Bank of America's Profit Drops 77 Percent

Monday, April 21, 2008 7:49 AM

CHARLOTTE, N.C. -- Bank of America Corp. said Monday its profit fell 77 percent in the first quarter, hurt by trading losses and a $3.3 billion increase in reserves for problem loans.

The Charlotte-based bank, which recently bought struggling mortgage lender Countrywide Financial, reported earnings of $1.21 billion, or 23 cents per share, on $17 billion in revenue.

Analysts on average expected a profit of 41 cents per share on revenue of $16.5 billion, according to Thomson Financial.

The bank's shares fell 67 cents to $37.89 in premarket trading.

"These results clearly did not meet our expectations," Chief Executive Ken Lewis said in a statement. "The weakness in the economy and prolonged disruptions in the capital markets took their toll."

Results included $1.31 billion of trading losses compared with income of $1.66 billion a year earlier. This was driven primarily by $1.47 billion in write-downs of collateralized debt obligations, a security often backed by subprime mortgage loans, and $439 million for loans to fund leveraged buyouts. Trading losses were $5.15 billion in the fourth quarter of 2007.

Bank of America said the $3.3 billion increase in reserves was part of a $4.78 billion increase in provisions, to $6.01 billion, "due to rising credit costs - particularly in the home equity, small business and homebuilder portfolios."

The company said it "remains concerned" about the health of the consumer.

http://www.newsmax.com/money/Bank_of_America_Profit_/2008/04/21/89621.html

Woooooooooooooooo Hoooooooooooooooooooo go give out more credit cards to Illegal Aliens
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ourcountrynottheirs · Posted: Mon Apr 21, 2008 12:35 pm Post subject:

Isn't this the bank that was giving loans and stuff to illegals?
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jp_48504 · Posted: Mon Apr 21, 2008 12:38 pm Post subject:

jp_48504 · Posted: Mon Apr 21, 2008 12:40 pm Post subject:

Market Dispatches4/21/2008 12:00 PM ET
Bank of America's profit plunges

The bank reports a 77% drop in profit and misses Wall Street's estimate. National City is reportedly close to getting a cash injection. Oil continues to soar. Eli Lilly and Merck report higher earnings.

By Charley Blaine and Elizabeth Strott

The subprime mess took its toll on Bank of America (BAC, news, msgs) in the first quarter.

The bank this morning reported a 77% drop in profit for the first quarter, with BofA earning $1.21 billion, or 23 cents per share -- down from the $5.26 billion, or $1.16 per share, the banking giant reported in the first quarter of 2007. Analysts were expecting earnings of 41 cents per share.

Shares of the Dow component fell 65 cents, or 1.7%, to $37.91 in midday trading. More broadly, stocks were lower this morning after soaring on Friday.

At 12 p.m. ET, the Dow Jones Industrial Average was down 55 points to 12,795 after gaining 229 points, or 1.8%, on Friday. This morning, the Nasdaq Composite Index had lost 2 points to 2,401, and the Standard & Poor's 500 Index had shed 6 points to 1,384.

Bank of America wrote down $1.9 billion on bad mortgage-related securities in the quarter and set aside $6 billion to cover bad loans and credit losses, up from the $3.3 billion it had set aside in the fourth quarter.

"The weakness in the economy and prolonged disruptions in the capital markets took their toll on our performance," Chief Executive Officer Ken Lewis said in a press release. "We remain concerned about the health of the consumer given the prolonged housing slump, subprime issues, employment levels and higher fuel and food prices."

* Video: Inside BofA's earnings report

http://articles.moneycentral.msn.com/Investing/Dispatch/080421markets.aspx
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AirborneSapper7 · Posted: Mon Apr 21, 2008 12:43 pm Post subject:

this is one of many banks I hope collapses on it's own corrupt weight
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cayla99 · Posted: Mon Apr 21, 2008 1:01 pm Post subject:

MW · Posted: Mon Apr 21, 2008 1:07 pm Post subject:

Gogo wrote:

SOSADFORUS · Posted: Mon Apr 21, 2008 1:09 pm Post subject:

Can't think of any one corporation who deserves it more!! Laughing

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ALIPAC · Posted: Mon Apr 21, 2008 1:11 pm Post subject:

I will ask JP to post this news on our boycott site at www.bankofamericaboycott.com

W

cayla99 · Posted: Mon Apr 21, 2008 1:13 pm Post subject:

Maybe we should send Absolut a copy of our BOA boycott and this article Razz

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legalatina · ALIPAC Hero Elite Joined: Sep 17, 2007 Posts: 2360

they were profiteers of illegal immigration giving out no-doc, sub-prime loans to illegal aliens as well as credit cards to illegals. Giving money to the highest risk, low-income, low-wage earners with every reason to flee the country....not a good business decision ....quick money made from fees but now the whole company is going under....I wonder how much BOA will donate to LA RAZA this year?

mapwife · Posted: Mon Apr 21, 2008 4:36 pm Post subject:

I guess that too many illegals they gave loans and credit cards to, walked away from their debts. You play with fire, you get burned.

I'm sure others besides illegals did this to them as well, but their willingness to ad illegals to the mix, made is just that much worse for them.

TexasBorn · Posted: Mon Apr 21, 2008 4:39 pm Post subject:

Hello BOA. Your chickens have finally come home to roost. How do you feel?!
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SicNTiredInSoCal · Posted: Mon Apr 21, 2008 4:44 pm Post subject: