Bank of America Posts $1.6 Billion Earnings Loss

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Bank of AmericaBank of America (BAC) Friday reported a loss of $1.6 billion in the fourth quarter after its costs related to soured home loans increased.

Bank of America Corp.'s loss available to shareholders after paying out dividends was 16 cents per share. Analysts surveyed by FactSet had forecast the bank would earn 18 cents a share. Excluding a charge of $2 billion related to the home loans, the bank would have earned 4 cents a share. A year earlier, Bank of America had reported a loss of $5.2 billion.

The bank reported revenue of $22.4 billion for the quarter, compared to $25.1 billion in the previous year.

Bank of America also kept aside an additional $4.1 billion for bad home loans that it could be forced to buy back from Freddie Mac and Fannie Mae and other investors and another $1.5 billion for litigation expenses. Investors say that the bank should take back the bad home loans because they were sold on improper documentation.

It was an attempt by the bank to leave behind its issues related to problem home loans that came along with its 2008 purchase of Countrywide Financial, the country's largest mortgage company at the time. Besides buying back bad loans, several banks were stung by accusations in the fourth quarter that they failed to properly review documents used in foreclosures. That led Bank of America to halt foreclosures in all 50 states.

"Last year was a necessary repair and rebuilding year," said CEO Brian Moynihan.

The results of the nation's largest consumer lender stand as a proxy for the health of the people's finances. And Bank of America's results echoed what other banks have been reporting earlier in the week that the fiscal health of the American people is improving.

For the sixth consecutive quarter, there were fewer people that were late meeting monthly payments. The bank's losses from lending in its credit card and home loan business declined $414 million from the third quarter of 2010, because of a drop in delinquencies and bankruptcies.

For the full year 2010, the bank reported a loss of $3.6 billion, compared to a loss of $2.2 billion in 2009.

Bank of America's shares were down 27 cents, or 1.9 percent, in pre-market trading Friday.

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daveswrath0704

Boa have said it on the TV that they are above the Law why they that home from people pay out million in bonuses get free trap money and think profit is not good enought but greed is just thinl if boa came out and said we sorry for are greed and be happy with a profit only or brake even some time every people might start going back

January 22 2011 at 7:09 PM Report abuse rate up rate down Reply
Sharon

What do they expect? You have in Bank of America probably the least 'attractive' set up of customer treatment of any major bank in the nation! $6.00 to cash a check drawn on BOA if you, yourself, don't hold a BOA account. Drive-up windows can be used only by BOA account holders, others must enter the bank. Checks of over $1,000 in value cannot be cashed even by account holders at the drive-up window....even if you are a wheelchair dependant handicapped customer, you must park your van, unload your wheelchair and go inside the bank to cash a check for $1,000 or above. BOA's online banking does not post transactions in a manner that allows someone who discovers they are a few dollars overdrawn time to transfer funds internally to cover the shortfall before closing time.....once it is pending on your online account page where you can see it has happened, you are stuck with an overdraft fee, and in most cases a returned item. I could go on, but you get the picture. There is NOTHING about customer policy to attract the non-BOA account holder to want to do business with these people. Pitifully poor PR and promotional advisors. What a waste. Thankful that my present bank is the opposite in every way....and an even bigger banking institution, no less.

January 22 2011 at 12:31 AM Report abuse +1 rate up rate down Reply
Hello Bob

Could not have happened to a more deserving company !

January 21 2011 at 3:48 PM Report abuse +5 rate up rate down Reply
Chuck

I fired BOA years ago when they started the long lines, with no help. Maybe more people should move.

January 21 2011 at 2:56 PM Report abuse +4 rate up rate down Reply
Riverside

Our Mtg. and loan was bought by Bank America. I'm tired of receive mail stating our account has been sold to another company. I believe this was the 3rd time it was sold. We have good credit because we make our payments ontime.

January 21 2011 at 2:36 PM Report abuse +2 rate up rate down Reply
Chuck Mueller

BAC is as crooked as anything - they promise everything to get the Fed's money and WILL NOT help anyone. There website - if you need help or laidoff (unemployed) just let them know - well we've letting them since October of 2010 - all we get is a form letter (quote - thanks for letting us know - we'll get back to you in 20 days) - I've those 5 times since last October with NO HELP being offered - just dumming notices and foreclosure notices. They are EVIL and should be force to REPAY the money from the Fed's immediately. Even a letter to the US Sentor of Michigan doesn't help - it also goes UNANSWER.(twice since the election). Where is all of this "underwater, hardship" help that the Fed's says we're suppose to be able to get?

January 21 2011 at 2:17 PM Report abuse +5 rate up rate down Reply
Kathy Jo.

unfortunately i have to deal with boa cause they bought my loan i agree they are the worst people!!!! my mortgage has payment has gone up 45% in less than a year because of their screw up not mine i hope they do get shut down they are nothin but a downfall to this country!!!

January 21 2011 at 2:00 PM Report abuse -2 rate up rate down Reply
Sue

Boo Hoo BOA! This is what happens when you suck money out of people & treat them like crap. You lost all your credibility.

January 21 2011 at 1:58 PM Report abuse +6 rate up rate down Reply
sexymomma

I can guarantee you that state and federal court employees will be overloaded for years to come from homeowners filing law suits against BOA. Whether it be individual or class action. BOA has screwed so many homeowners it makes me sick. Our government is not helping us. They have abused the HAMP program. We homeowners have no recourse because no one wants to help. Not even most attorneys. Most pansy attorneys are afraid of BOA. Why? Customer service reps. don't know what the crap their talking about. They are so un-educated. They lie & make up excuses just to get you off the phone. They hire these people from a temp. service and pay them cheap cause they don't know ****! My 10 yr old knows more accounting than they do. What does this say for basically the top loan servicer in the United States of America?????? Need I say more.

January 21 2011 at 1:56 PM Report abuse +4 rate up rate down Reply
krystalmoon2003

I had worked for countrywide for 6 years and 1 year after the b of a takeover, and missed getting laid off with the 2 major downsizings. I believe that what goes around comes around. BofA is just as bad ethically if not worse than Countrywide. I fully understand that the mortgage industry is cyclical...but...they let their greed become their #1 priority to fill their own pockets with stolen money, mine included, they (chl) stole part of my 401k plan and the then CEO Angelo Mazillo jumped ship with the sale of his 497K shares of the company stock and left the rest of us picking up the pieces. If I sound bitter I am. I am 55 yrs old and that money was for my retirement. As it stands now I don't know if I will be able to retire until much later. On the bright side I up and quit BofA, retained what retirement $ I had left and went back to school to be a phlebotomist.....they can all kiss my preverbial "butt". As I was watching CNN it now seems that BofA is "right sizing", just another fancy word for layoffs. I believe that the company is now receiving some of the bad karma that they put forth and I say its about time s#@t is hitting the fan!!!!!!!!!!!!

January 21 2011 at 1:52 PM Report abuse +3 rate up rate down Reply