Bank of America Reports $2 Billion Loss

Second-Largest U.S. Bank Says Credit Problems will Continue

(AP)  Bank of America Corp. says it lost more than $2 billion in the third quarter as its loan losses continued to rise.

The second-largest U.S. bank, which lost $2.24 billion after accounting for preferred dividends, said its losses for failed loans came to almost $10 billion during the July-September period, up almost $1 billion from the second quarter. The bank also added $11.7 billion to its reserves to cover bad loans.

The company, hurt like other banks by consumers' inability to pay their bills, said credit problems would continue for the near future. 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.

The company's stock is down in premarket trading.

[antoniof123]

Bank of America Reports $2 Billion Loss

On a side note.

The CEO is leaving and not taking his pay only his golden parachute that is over 60,000,000.00 Million dollars.

The only people who suffer are those at the bottom.

[truthislife1]

A 2 billion$ loss after a 20 billion$ gain. crybabies

[titletrack]

Get the bailout shovel ready. Taxpayers better be ready to ante up, they are too big to fail.

[confused2byu]

Maybe if BofA wasn't charging customers outrageous interest rates; some as high as 31% then maybe their customers could pay their credit card bills. Also wasn't BofA the same bank that proudly issued credit cards to illegal immigrants just a couple of years ago. Guess BofA needs to go away just for being stupid and greedy. Please do not ask me for another loan BofA.....You have done nothing to help your customers, the state of the economy, or yourself.

[Constitionalist]

The fake recovery is about to end. There are no jobs being created. Unemployment and mortgage defaults are rising. Inflation is an inevitabilty. Prices of goods will rise as income drops. There will be much suffering for the ordinary people. The rich are quickly converting their money into foriegn currency to protect themselves. The current reprieve is a sham to allow them time to do this. This ship is about to sink and you will soon see the rats swimming away, leaving us to suffer the results of their corruption and greed.

[all_father]

Typical. All BofA mentions is how this is the result of consumers not paying back loans. They don't say anything about how this is also a write down of their bad paper from the past (with the taxpayer footing the bill for their "cash reserves").

"Too big to fail" financial institutions are the kiss of death for the consumer. Do your due diligence on regional banks in your area and do your business with them. Anybody who trusts banks like BofA, Citi, Chase, etc. deserves what they get. The day of the "big" banks is done!

[jiminlou]

they are gonna go for more free gov cash, saw this coming when they started to raise the credit card rates so people cant afford the payment. all a plan to get more bailout cash. they all will be doing the same thing again, to big to fail. lol

[AOCGUY]

"...lost $2.24 billion after accounting for preferred dividends..."

Why would a company be paying dividends in a year that they are losing money. I'm curious what the totla on dividends was paid out this year.

[mtcolquitt]

Anyone who still banks with this COMPANY is nuts!

[credibility2]

If there is blame and fault to be taken, don't forget to include the consumers who defaulted on their loans. A lot of this was preventable, as in never live beyond your means and always be prepared for the worst. It's called being responsible and accountable something many deadbeat slacker consumers refuse to do. It's always easier to blame big bad business for their own stupid big bad decisions.

[afmcalax]

But I bet the corporate executives still want their huge bonuses and the departing CEO will get a huge retirement package for bankrupting his company. American capitalism ... no Responsibility; No Accountability.

[credibility2]

The consumers that have defaulted on their loans (mortgages, credit card balances, etc.) are also irresponsible and refuse to have any accountability for their actions. Somehow you think that it's all the fault of the banks and their executives and shareholders. Lopsided thinking skewed to the left.

[jtdev1]

I don't think that the people intended to default on their loans. Not too many people go out and get loans only to default months/years later after paying all that time just to end up with nothing, no house, car and bad credit to boot. The cause of the non payment of the loan is a loss of job. Usually the person has no control over that. One does not try to live beyond their means, they (like the banks) take risks and "Bank" on having a job to pay off whatever loan they have.

The banks on the other hand were looking for easy money. Teaser rates, Knowing full well what the cost of the loans would be to the people. They chose to take the risk without verifying income in a lot of cases.

So we can blame them both.

[Vet_Turner]

Let them fail. They do nothing for the American Economy. Let those republican fat cats feel the pain of a $400/wk unemployment check.

These banks and the people that run them are a leech on society.

[stricklandteri]

Let them fail!!! Should have gone out of business the first time. I say good riddens!!!

[jtdev1]

"The company, hurt like other banks by consumers' inability to pay their bills..."


Yeah right! More like: The company, hurt like other banks by consumers' inability to pay BANK FEEs




Maybe they should have saved some of that money they passed out in bonuses....



I hope they FAIL and this time NO BAILOUT!