Tue
Jan 22 2008
12:47 pm
Wipeout
By: R. Neal

Bank of America 4Q profits plunge

Hurt by the deepening credit crisis, Bank of America Corp. said Tuesday its fourth-quarter earnings fell 95 percent, and Wachovia Corp. reported its earnings tumbled 98 percent.

Net income at Bank of America, the nation's second-largest bank, dropped to $268 million, or 5 cents per share, in the three months ended Dec. 31 from $5.26 billion, or $1.16 per share, a year ago.

But don't feel too sorry for BofA. Yet. Earnings in 2007 were $14.98 billion, v. $21.13 billion in 2006. Looks like the party was over in the fourth quarter, though, which does not bode well for our economy going forward.

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Average Guy's picture

Still shopping

Submitted by Average Guy on Tue, 2008/01/22 - 1:15pm.

How does a business with that kind of dip, make this kind of purchase? (link...)

Sounds like continuing the philosophy of bad investments that is driving the current downturn.

gonzone's picture

Need more Banking Deregulation

Submitted by gonzone on Tue, 2008/01/22 - 2:14pm.

It's obvious the solution to these issues is more banking deregulation. And while we're at it let's have another "Consumer Protection Act" to raise interest rates again and totally prevent personal bankruptcy while establishing debtor's prisons where the worthless SOBs can slavishly pay off their medical bills or die trying.

But seriously, financial industry deregulation DID lead to this event. Can't control greed without strict rules and enforcement, just like teenage hormones. I bet making personal bankruptcy almost impossible didn't figure into the fact that people would just walk away from homes since they can't get rid of the credit card debt, lose the home, keep the cards. How many banks are wishing folks could renege on the credit card debt and keep the mortgages right about now? They can't complain since they wrote the damn law (just ask Delay.)

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