Business News
Bank of America posts another massive loss
Oct 16, 2009, 15:20 GMT
New York - Bailed-out financial firm Bank of America on Friday reported a surprising 2.2-billion-dollar loss in the third quarter due to fresh credit losses.
The loss was higher than expected and comes after rivals Goldman Sachs and JP Morgan Chase returned to billions of dollars in profits earlier this week. Citigroup also posted a loss Thursday, but said it had earnings of 101 million dollars excluding one-time costs.
Bank of America, the country's second-largest bank, has been one of the worst hit by the financial crisis and come under fire for its hasty takeover of rival Merrill Lynch last year. The bank posted a 704-million-dollar profit during the same quarter of 2008.
'Obviously, credit costs remain high, and that is our major financial challenge going forward,' said chief executive Ken Lewis, who has said he will resign at the end of the year.
With the US government rescuing Bank of America with 45 billion dollars, Lewis has been forced to give up bonuses and his 2009 salary of 1.5 million dollars. But the CEO has faced public outrage over a purported 125-million-dollar retirement package for when he leaves the company.
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