Bank of America has joined a number of other banks reporting losses linked to bad-credit. The United States’ second biggest bank has revealed that fourth quarter profits were down 95 per cent because of losses linked to poor trading decisions and increasing worries about credit.
The chief executive Kenneth Lewis said the last few quarters were easily the toughest environment he’d experienced since taking the job in April 2001.
In terms of numbers – Bank of America recorded 4.8 billion euros’ worth of losses in the quarter… net income fell to 183-million euros, compared with 3.6-billion euros a year earlier.
The bank also doubled the amount it set aside for credit losses.