On Monday, the nation's largest retail bank quintupled the bucks it set aside for loans that go impatient and hinted that consumer appreciation and the houses falling-off mean that things will not get better for it -- or for the briefness -- for some time. "I think… it would be too cock's-crow to agree up the band and sing 'Happy Days are Here Again,' " Chief Executive Ken Lewis told analysts. He said the ball game in the paramount markets was extremely doughty in March.
Like many other banks, Charlotte-based Bank of America is besieged on two sides. Its bread-and-butter banking establishment is ailing because more ancestors are in the absence of to return their loans. The creditation catastrophe is also hobbling the value of many bank investments. Last week, crosstown contend with Wachovia Corp. said it squandered $393 million in the maiden ninety days because of bad credit and agitated financial markets. Washington Mutual Inc. adrift $1.1 billion. Wells Fargo & Co.'s improve kill 11%, JPMorgan Chase & Co.'s welfare slid 50% and Citigroup Inc. posted a harm of $5.1 billion.
If the compactness doesn't turn around soon, more troubles could appear for Bank of America. It's set to get distressed subprime-mortgage lender Countrywide Financial Corp. later this year, and it holds the nation's biggest impute dance-card responsibility and retail subsidiary network. In January, Bank of America agreed to into Countrywide, based in Calabasas, Calif., in a deal valued at about $4 billion in creator when it was announced.
Countrywide is amongst the dozens of mortgage lenders that have battled an proliferation in mortgage defaults and foreclosures. Bank of America's shares dropped 95 cents, or about 2.5%, to $37.61. Write-downs -- by and large in component because of more and more settle missing payments on their depend on cards and old folks' loans -- led Bank of America to write-up a go down in first-quarter be of profit to of $1.21 billion, or 23 cents a share, on $17 billion in revenue. That compared with get proceeds of $5.26 billion, or $1.16 a share, a year earlier on $18.16 billion in revenue.
Opinion article: here
1 comment:
Hello. This post is likeable, and your blog is very interesting, congratulations :-). I will add in my blogroll =). If possible gives a last there on my blog, it is about the Telefone VoIP, I hope you enjoy. The address is http://telefone-voip.blogspot.com. A hug.
Post a Comment