Embattled BofA takes fourth-quarter beating

Bank of America Corp. suffered its first quarterly loss in 17 years due to escalating credit costs, write-downs of $10.47 billion and trading losses in its capital markets businesses.
JAN 16, 2009
Bank of America Corp. suffered its first quarterly loss in 17 years due to escalating credit costs, write-downs of $10.47 billion and trading losses in its capital markets businesses. The Charlotte, N.C.-based bank’s fourth-quarter loss of $2.39 billion, or 48 cents a share, compares with a profit of $215 million, or 5 cents a share, a year earlier. Assets under management at the end of the fourth quarter were $525 million, down 18% from the end of 2007. The banking giant’s capital markets and advisory-services business recorded a loss of $4.95 billion, compared with a loss of $3.39 billion a year earlier. The early earnings announcement, originally scheduled for Jan. 20, came on the same day that that the Department of the Treasury and Federal Deposit Insurance Corp. said that the government will invest $20 billion into BofA through a purchase of preferred shares (InvestmentNews, Jan. 16). BofA’s results include figures factored in by its July 1 purchase of Calabasas, Calif.-based Countrywide Financial Corp., but not its acquisition of Merrill Lynch & Co. Inc. of New York., as that didn’t close until Jan. 1 Merrill Lynch’s preliminary results indicate a fourth-quarter loss of $15.31 billion, or $9.62 a diluted share, due to the market’s weakness, BofA said in its earnings report, which it released this morning.

Latest News

 Younger Americans fear AI's retirement impact, Thrivent finds
Younger Americans fear AI's retirement impact, Thrivent finds

AI-driven job fears are weighing on retirement confidence, especially among Gen Z and Millennials, Thrivent survey finds

FINRA spanks Centaurus with $1.1 million penalty over variable annuity switches
FINRA spanks Centaurus with $1.1 million penalty over variable annuity switches

It’s the second time in as many years regulators have penalized Centaurus Financial for lack of compliance with Reg BI.

Wells Fargo touts AI Teammate to streamline advisors’ workloads
Wells Fargo touts AI Teammate to streamline advisors’ workloads

AI Teammate is embedded within Wells Fargo’s Advisor Gateway desktop platform.

Advisor moves: &Partners reels in $524M RayJay team, Focus firm Eton Advisors welcomes Northern Trust alum
Advisor moves: &Partners reels in $524M RayJay team, Focus firm Eton Advisors welcomes Northern Trust alum

Elsewhere, Ameriprise added a $470 million Wells team in New York, while an ex-Morgan Stanley advisor bolsters UBS' Austin, Texas office.

The exit planning conversations advisors need to have with business owners
The exit planning conversations advisors need to have with business owners

Financial advisors play an essential role in helping small business owners navigate their transition out of the company — and into retirement.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income