Tuesday, April 21, 2009
For BofA, a $4.2 Billion Profit Isn't a Fix
Lewis Warns Worst to Come on Credit; Stock Declines 24%
Bank of America Corp. posted a first-quarter profit of $4.2 billion that nevertheless cast fresh doubt on the health of U.S. banking industry due to the depth of problems in many of the company's core banking businesses.
"Make no doubt about it," said Kenneth Lewis, chairman and chief executive of the Charlotte, N.C., bank. "Credit is bad and will eventually get worse before it stabilizes and improves." In a sign of how the wave of shaky loans is expected to rise beyond current levels, Bank of America set aside $13.4 billion for future credit losses, up 57% from the fourth quarter...
WSJ: For BofA, a $4.2 Billion Profit Isn't a Fix (Subscription required)
Bank of America Corp. posted a first-quarter profit of $4.2 billion that nevertheless cast fresh doubt on the health of U.S. banking industry due to the depth of problems in many of the company's core banking businesses.
"Make no doubt about it," said Kenneth Lewis, chairman and chief executive of the Charlotte, N.C., bank. "Credit is bad and will eventually get worse before it stabilizes and improves." In a sign of how the wave of shaky loans is expected to rise beyond current levels, Bank of America set aside $13.4 billion for future credit losses, up 57% from the fourth quarter...
WSJ: For BofA, a $4.2 Billion Profit Isn't a Fix (Subscription required)
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