Bank of America posts $2.2 bn loss
Bailed-out financial firm Bank of America reported a massive $2.2 billion loss in the third quarter due to fresh credit losses.business Updated: Oct 16, 2009 23:14 IST
Bailed-out financial firm Bank of America on Friday reported a massive $2.2 billion loss in the third quarter due to fresh credit losses.
The loss was higher than expected and comes after rivals Goldman Sachs and JP Morgan Chase returned to billions of dollars in profits earlier this week. Citigroup also posted a loss Thursday, but said it had earnings of $101 million excluding one-time costs.
Bank of America, the country's second-largest bank, has been one of the worst hit by the financial crisis and come under fire for its hasty takeover of rival Merrill Lynch last year. The bank posted a $704-million profit during the same quarter of 2008.
"Obviously, credit costs remain high, and that is our major financial challenge going forward," said chief executive Ken Lewis, who has said he will resign at the end of the year.
With the US government rescuing Bank of America with $45 billion, Lewis has been forced to give up bonuses and his 2009 salary of $1.5 million. But the CEO has faced public outrage over a purported $125 million retirement package when he leaves the company.