Bank of America has posted a quarterly loss for the second time in less than a year. This time it was one billion dollars (672 million euros).
The largest bank in the US suffered particularly from its credit card division as people failed to pay off their debts. Analysts said that demonstrates the financial crisis is far from over. Bank of America’s Chief Executive Kenneth Lewis is quitting at the end of this year after being criticised for his handling of the bank’s purchase of Merrill Lynch. Under pressure from the US government, which has bailed out the bank with billions, he will get no salary or bonus payments for this year but this hedge fund manager Damon Vickers of Nine Points Capital Partners said people are getting too worked up about that: “They can scream and yell all they want but I really I don’t really see it is self serving to go after bonuses. People need to be incentivized and if they are performing and keeping the country afloat then they need to be paid.” The 62-year old Lewis, who has worked for Bank of America for 40 years, is in line for around 84 million euros in retirement benefits. He has also received millions in stock options in recent years.