Bank of America Posts 77% Dive on $6B in Writedowns

Writedowns pack bigger punch than analysts expected
By Jim O'Neill,  Newser User
Posted Apr 21, 2008 8:00 AM CDT
Bank of America's chairman, president and CEO Kenneth Lewis.   (AP Photo/Sara D. Davis)
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(Newser) – More than $6 billion in subprime writedowns sent Bank of America profits skidding for the third straight quarter today, as the nation's second-largest bank posted a 77% decline in net income for the first quarter. Earnings were $1.21 billion, down from $5.26 billion a year ago, reports Bloomberg. The losses exceeded analysts’ expectations by some 44% and sent market futures into a slide this morning. BofA—in the process of acquiring troubled home lender Countrywide Financial—said revenue slipped 6%.