BofA takes $1.9 billion in write-downs

Writing off $1.47 billion in collateralized debt obligations and $439 million in leveraged loans, Bank of America Corp. today reported a 77% decline in first-quarter earnings, to $1.21 billion, or $0.23 cents a share. Thomson Financial had forecast earnings at $0.41 a share. Last year, the Charlotte, N.C.-based bank earned $5.26 billion, or $1.16 per share, in the first quarter. Despite an 11% increase in assets under management in the bank’s global wealth and investment management business to $607.5 billion, from $547.4 billion, the bank acknowledged its overall disappointing results. “The weakness in the economy and prolonged disruptions in the capital markets took their toll on our performance,” said bank chairman Kenneth D. Lewis in a statement. The bank set aside an additional $3.3 billion as a reserve for problem loans.