Bank of America posts record quarterly loss of $8.8bn (BBC)

[eppur_se_muova]

Bank of America (BoA) has posted its biggest quarterly loss after agreeing an $8.5bn (£5.2bn) settlement related to sub-prime mortgages.

The US's largest bank made a loss of $8.8bn in the three months to the end of June, lower than analysts had expected.

Included in the losses are payments to investors and insurers, and charges for future claims over home loans.

The bank's revenues for the quarter were $13.2bn, down 55% from a year ago.

On 29 June, BoA announced it would take a series of one-off charges after private investors demanded the bank repurchase toxic home loans held in mortgage-backed securities.
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more: http://www.bbc.co.uk/news/business-14203304

[Drale]

1. After hearing this

If I had my money in Bank of America, I would think about moving it, and moving it fast.

[William769]

2. Serves them right.

But never fear, Obama to the rescue!

[zeos3]

3. They still have more cash than the US Treasury.

Here's a link to an article I posted from Alternet.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1522666


http://www.alternet.org/newsandviews/article/635585/29_... /


"As of July 13, 29 public companies had more cash on hand than the U.S. Treasury Department, according to the site Zero Hedge based on numbers from Capital IQ. It’s a stark reminder that if Congress refuses to raise the debt ceiling, the government won’t have nearly enough money to continue funding essential services and programs.

In the first half of July alone, Treasury cash balances were depleted from from $130 billion to just $39 billion. That means the most powerful nation on earth currently is tied with Google for the amount of cash that it has, and is less flush than Bank of America, JP Morgan Stanley, and Goldman Sachs, among others.

Two of the top three companies are Chinese, while Bank of America comes in third. The numbers effectively rebut Republican claims that the government has plenty of money to keep funding essential services while paying down its debt. It also belies GOP claims that companies are in need of lower corporate taxes. American corporations have a record amount of cash — they are just refusing to invest domestically while lobbying for tax breaks."