The Bank of America is the latest bank to announce poor third-quarter results, with America’s second largest bank hit by a 32% drop in their profit this last quarter. Net income also fell from £2.65 billion to £1.8 billion, whilst share prices fell by 3.4%, meaning they have fallen by 6% this year so far.
The bank is one of many to be afflicted by the instability in the investment banking world, though it could have been worse for the bank, had chairman Ken Lewis not decided in 2001 to pull out of subprime lending, though much of the £257m of structured investments currently being written off has been backed by subprime mortgages .
However, Lewis refused to attribute the blame to the volatility of the market, instead claiming two-thirds of the reason for the bank’s reduced profits was poor judgement.
Bank of America Profits Down
Financial Services > e-banking > Banking news
Bank of America Profits Down
Fri, 26 Oct 2007
Recommended links
The Essential Banking GuideTop Ten Financial Advisors
Great Deals on Savings Accounts
Need a Loan?
Debt Solutions
Savers cautious after Northern Rock
Apacs: Online banking fraud increasing
| Banking news |
|---|
| Bank of England Hold Interest Rate - Fri, 05 Mar 2010 |
| Young Adults Banking on Parents for Support - Wed, 03 Mar 2010 |
| Banks Ponder Finding that One in Seven Brits Has Never Saved - Fri, 26 Feb 2010 |
| More News |
SimplyHealth Dental Plan
Get covered from £7.70 per month.
Amex Cash Back
Credit Card
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company