Skip to: Content
Skip to: Site Navigation
Skip to: Search
MONDAY, NOVEMBER 23, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


5

Bank of America Loses $2.2B as Loans Sour

Investment revenues up, but consumers default on nearly $10B

Share

(AP) – Bank of America Corp. lost more $2.24 billion in the third quarter, the company announced today, as loan losses kept rising. Those losses amounted to nearly $10 billion, providing further evidence that consumers are still struggling to pay their bills. The bank also added $2.1 billion to its reserves to cover bad loans, bringing its total reserves to $11.7 billion. The 26 cents-per-share loss was 5 cents worse than analysts expected.

Bank of America's results were aided by profit from investment bank Merrill Lynch, including income from bond, stock and currency trading. The banks total revenue actually increased 33% to $26.04 billion. Its earnings follow the pattern set this week by Citigroup Inc. and JPMorgan Chase & Co., which also reported more loan losses during the third quarter, though JP Morgan and Goldman Sachs managed big profits anyway thanks to trading operation gains.

In this photo made Wednesday, Sept. 30, 2009, a branch office of Bank of America is shown in New York.
In this photo made Wednesday, Sept. 30, 2009, a branch office of Bank of America is shown in New York.   (Mark Lennihan)
In this April 19, 2007 file photo, pedestrians walk past a Bank of America branch in San Francisco.
In this April 19, 2007 file photo, pedestrians walk past a Bank of America branch in San Francisco.   (AP Photo/Jeff Chiu, file)
« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.20.09
The Health-Care Wars Have Just Begun
11.19.09
Sarah Palin Deserves Some More Attention
5 comments
VIEWING:
 
godawgs
Oct 16, 09 9:20 AM CDT
so we are right back to where we started with this. Loans are being defaulted but somehow the investment banks are recording record profits. why did we bail out these banks again? Reply
Vote up! Vote down!
+4
Mia
Oct 16, 09 9:36 AM CDT
Because we were promised reform of the industry. I love Obama but even I am getting pissed off. He needs to get over his need to hold hands and sing love songs and steamroll. He's trying to win a second term and it's pissing me off. Reply
Vote up! Vote down!
+4
IN RESPONSE:
godawgs
Oct 16, 09 10:05 AM CDT
he doesn't have to try this hard though. the country is more then likely going to re-elect him if he can deliver half of what he promised. he is being nice to a fault.
Vote up! Vote down!
+3
plstyle
Oct 16, 09 11:23 AM CDT
I think we all know what this means.. More Fuct up fees for its banking customers. Reply
Vote up! Vote down!
+1
IN RESPONSE:
divetrader
Oct 16, 09 12:14 PM CDT
The banks will grab easy money where they can find it. ATM and overdraft fees are a gold mine for them. Plus the enormous interest they can charge. Sooner or later Congress needs to put citizens ahead of banks.
Vote up! Vote down!
+1
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

100 Stories

Q3 EARNINGS

Goldman Tops $3B in Profit, Blows By Estimates

Bank triples profit last year, sets $5.3B aside for pay, bonuses

Oct 15, 09 7:13 AM CDT
(Newser) - Goldman Sachs is even more golden than we'd thought. The top firm on Wall Street posted a record third-quarter profit of $3.19 billion, a billion dollars higher than expected, thanks to returns on advising on takeovers and more aggressive investing. That quarterly result more than triples the $845 million... More »

MORE ABOUT:
executive compensation • Goldman Sachs • earnings reports • third quarter earnings • Lloyd Blankfein

JPMorgan Earns $3.6B, Despite Loan Losses

Market soars as investment profits give bank strong 3rd quarter

Oct 14, 09 9:02 AM CDT
(AP) - JPMorgan Chase reported strong third-quarter earnings today as its thriving investment banking business more than offset rising consumer loan losses that the bank warned would continue. The company, the first of the big banks to report, showed a $3.59 billion profit, or 82 cents per share. But it also... More »

MORE ABOUT:
stock market • Wall Street • earnings reports • corporate earnings • financial services • financial sector • JPMorgan Chase

MARKETS

 Dow Up 21 After 
 Rally Loses Steam 

Dow hits new 2009 high but falls back amid light volume

Oct 12, 09 3:18 PM CDT
(Newser) - The stock indices ended mixed today after strong morning gains lost steam. The Dow hit a new high for 2009, 9931.82, off strong expectations for the third-quarter earnings. But profit-taking traders capitalized on recent gains, pushing the market lower; light trading volume on the Columbus Day holiday amplified their... More »

MORE ABOUT:
Dow Jones • earnings reports • Nasdaq • corporate earnings • holiday • third quarter earnings • Columbus Day • S&P 500

100 Stories

Copyright 2009 Newser, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.



Business 
TwitterFollow @NewserBusiness on Twitter

 
Bank of America • earnings reports • Merrill Lynch • loans • corporate earnings • third quarter earnings • loan-loss provision • toxic assets

from our news partners