Thread: Bank of (illegals) having a hard time boo hoo

I just read this on CNN. Bank of Illegals is having a hard time. GOOD!

Bank of America profit tumbles 41%

http://money.cnn.com/2008/07/21/news/co ... tm?cnn=yes
Last Updated: July 21, 2008: 8:11 AM EDT

The link does not even work.

Calm down Richard try the link now

Easier for everyone if you print the article....I have a slow computer and I only have a few b/4 going to work

Geez, no need for Monday morning crankies, folks

Here's the article:






Bank of America profit tumbles 41%


See all CNNMoney.com RSS FEEDS (close) By David Ellis, CNNMoney.com staff writer
Last Updated: July 21, 2008: 9:22 AM EDT

Problem bank list growing


NEW YORK (CNNMoney.com) -- Bank of America became the latest bank to report better-than-expected earnings, even as it revealed Monday that its profits plunged 41% during the most recent quarter.

The Charlotte, N.C.-based company reported net income of $3.41 billion, or 72 cents a share, during the second quarter. That was down 41% from $5.76 billion, or $1.28, a year earlier.

Revenue rose to $20.32 billion, up from $17.73 billion a year earlier, driven by wider net interest margins, loan growth and higher income from mortgage banking and the company's investment and brokerage services.

Both figures were much better than had been expected. Analysts surveyed by Thomson Reuters were expecting the company to report a profit of $2.66 billion, or 53 cents a share, on revenue of $18.37 billion.

Bank of America (BAC, Fortune 500) shares gained more than 11% in pre-market trading on the results.

"We are pleased with these solid results in a difficult financial environment," CEO Ken Lewis said in a statement. "Outside of real estate-related products, our operating results were quite good virtually across all business segments."

Two areas of its business that held up relatively well were Bank of America's wealth management unit and its investment banking division, even as it took a $1.2 billion writedown related to market disruptions in its investment banking unit.

The company's consumer and small business division took an earnings hit as it was once again battered by credit woes.

Further deterioration in the housing market and slower economic growth put pressure on its housing, commercial real estate and consumer and small business-related loan portfolios, the company said.

Bank of America said its non-performing assets jumped to $9.75 billion, or 1.13% of all loans, during the quarter.

The company also revealed it was forced to set aside $5.8 billion during the quarter to account for loans gone bad or ones that could falter in the future.

Fresh off the closure of its purchase of Countrywide Financial, Bank of America said the troubled mortgage lender lost $2.33 billion during the quarter. But it added that it expects the acquisition to help profitability this year. When the deal was first announced in January, the company said it expected the deal to be earnings-neutral for the remainder of the year

Also encouraging was a jump in the company's net interest margins, or the profits made from taking in deposits and lending them back out. Net interest income rose 25% during the quarter, as drastic interest rate cuts by the Federal Reserve drove down short-term borrowing costs.

Bank of America's latest numbers also suggest that the company remains well capitalized, which has become a key concern for large financial institutions as the credit crisis drags on.

The company said its Tier 1 capital ratio, a measure of a bank's ability to absorb losses, stood at 8.25%. A Tier 1 capital ratio above 8% is generally considered a good sign for financial institutions.

Ongoing deterioration in the housing market, mounting troubles in the economy and pressure from regulators have prompted financial firms to raise capital in the form of stock sales, dividend cuts and equity stake sales to outside investors.

Bank of America executives have said repeatedly that the company has no plans to cut its lofty dividend unless the economy enters a long and painful period.

Bank of America's quarterly results offer another encouraging sign for the hard-hit financial services sector. The bank is the latest to report results above analysts' expectations.

Citigroup (C, Fortune 500) booked a $2.5 billion quarterly loss on Friday, but managed to stay ahead of Wall Street's dreary earnings projections. On Thursday, Merrill Lynch (MER, Fortune 500) booked its fourth straight quarterly loss. JPMorgan Chase (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500) both reported a plunge in profit, but both managed to stay ahead of Wall Street's expectations.

Thank you AZ I had trouble copying the article thats why I used the link. Now everyones happy

Originally Posted by Cliffdid

Thank you AZ I had trouble copying the article thats why I used the link. Now everyones happy

You're welcome Cliffdid Anytime.

One question: What did Cliff do?

Treasurys slightly lower after BofA results
Posted on Mon, Jul. 21, 2008print email
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By JOE BEL BRUNO
AP Business Writer

NEW YORK -- Treasury prices fell slightly Monday after better-than-expected earnings from Bank of America Corp. motivated investors to put money back into the stock market.

Bank of America's second-quarter profit tumbled 41 percent from the year-ago period, but it still surpassed expectations. And that provided yet another signal that big retail banks are weathering the credit crisis.

Investors also adjusted their holdings ahead of several auctions scheduled this week. The stream of new government debt is expected to push prices lower in the next few days, especially after a run-up earlier this month.

The government plans to auction 3-month and 6-month bills totaling about $47 billion on Monday. That will be followed by auctions for $6 billion of Treasury Inflation Protected Securities and $28 billion of 4-week bills on Tuesday; $32 billion of 2-year notes on Wednesday; and $20 billion of 5-year notes on Thursday.

Tom di Galoma, head of Treasurys trading at Jefferies & Co., said he has been negative on Treasurys and is holding on to that view. One reason, he said, is that "this week's trade will be dominated by supply" and said he expects many fixed-income investors will continue to sell.

In early trading on Monday, the 10-year Treasury note fell 4/32 to 98 4/32. Its yield rose to 4.11 percent from 4.09 percent on Friday, according to BGCantor Market Data. Yields move in the opposite direction as prices.

The 30-year long bond - typically the most sensitive to inflation worries - fell 6/32 to 95 13/32. Its yield rose to 4.66 percent from 4.65 percent on Friday.

The 2-year note fell 3/32 to 100 10/32, and yielded 2.71 percent, up from 2.65 percent.

There was also little in the way of economic news for investors to trade on.

The Conference Board said the economy contracted in June as factories cut workers' hours and stocks tumbled. The private business group's index of leading economic indicators, a gauge of future economic activity, fell 0.1 percent, in line with forecasts by Wall Street economists surveyed by Thomson Financial/IFR. It also revised its May figure to show a decline instead of slight growth.

http://www.miamiherald.com/business/AP/ ... 12162.html

Don't be to happy about this it's the American tax payer that will foot the bank bailout

Amen "Jimpasz" taxpayers will eat it again!