Skip to comments.Bank of America dividend cut, to raise capital (former BOA CEO endorsed Obama)
Posted on 10/06/2008 2:50:48 PM PDT by maccaca
Bank of America Corp. announced a surprise dividend cut and a plan to sell $10 billion in stock to raise capital, as its third-quarter profit plunged amid a sharp deterioration in the outlook for consumer credit. The Charlotte, N.C., bank halved its dividend to 32 cents to add more than $1.4 billion to capital each quarter. Bank of America said it hopes to resume dividend increases as soon as its "earnings performance warrants." Net income fell 68%. The news sent shares down 7.5% to $29.82 in after-hours trading. "These are the most difficult times for financial institutions that I have experienced in my 39 years in banking," said Chairman and Chief Executive Kenneth D. Lewis. He added that the company believes it's "prudent" to raise capital as market conditions have changed "significantly" in the past two months. Mr. Lewis said the bank was willing to operating at capital levels below its targets, but said the company now believes it is important to be at its 8% Tier 1 capital ratio target "given the recessionary conditions and outlook for still weaker economic performance which we expect to drive higher credit losses and depress earnings."
(Excerpt) Read more at online.wsj.com ...
So how did he endorse Obama?
Link to Ken Lewis’s endorsement of Obama?
I’d also like to know when he endorsed Obama.
No kidding. The last person I want “watching” my money is someone in the tank for The One.
That was the former CEO of BOA who endorsed 0bama.
see post #8
It’s a good thing I owe them an assload of money. I’d feel worse if it were the other way around. Maybe....if Obamarama gets elected, I just default and become a friggin ‘victim’......
The Bank of Amigos, not the Bank of America. They give credit cards to illegal immigrants, so what do you expect?
I have quit using any credit cards with Bank of America. Did it quite a while ago. Find them out of touch with America.
I haven't seen this but it would not surprise me in the slightest to find that most bankers and other corporate CEO's endorse Obama. Especially in times of turbulence, organized capital gets very risk averse. Government can operate independently of the market forces, therefore is able to reduce or mitigate risk. Big money guys love big government just as much as, maybe more than, big labor(or what is left of it). Get used to it.
They weren’t the only one giving loans to illegals. It started long before it was announced on this site.
They all are paying for it now. Or we are paying for it.
A lot of the loans were outright fraud also. They never intended to pay the higher rates.
**(CEO just endorsed Obama, welcome to Obama’s America)**
This isn’t the Bank of America that rose from the fires and earthquake of Sanfrancisco. The originators must be turning over in their graves.
Again, that was the former CEO of BofA Hugh McColl, not the current CEO Ken Lewis.
Lewis has given 80% to Repubs, 20% to Dems.
His largest recent contribution was $25,000 to Elizabeth Dole and he gave $15,000 to the RNC.
Done that already. We’d been with them since they were known as NationsBank, but when they started offering accounts to illegal aliens, we bailed. This only further confirms our decision.
Guess who’s really in bed with the fat cats.........
and who’d do what’s right for the people of this country.
God I hate whining ingrates with a passion worthy of the warm place!
Don't be a hit-and-run.
It’s been said many times here...DO NOT BANK WITH B of A
I will be closing my accounts at BofA today and moving them to HSBC.
This supposed WSJ headline is very misleading!!! The so-called CEO of Bank of America, McColl, is in fact an EX-CEO and has not been at the bank since 2001!!! He heads up some private firm or other and has more recently been labeled a “socialite and philanthropist” in his home area. He is known to be very “emotional.”
I did a little research and found that McColl, while responsible for lots and lots of acquisitions during his tenure at B of A, actually didn’t do most of the real work. That work was credited to Ken Lewis.
I’d say there is no need to get excited and try to pull funds from B of A over this “endorsement.” McColl is LONG GONE. The DUmmies are thrilled about this but clearly don’t see that McColl has not been at B of A for years.
The FORMER BOA Charirman Hugh McColl endorsed Obama. The NEW chairman is Kenneth D. Lewis. Have no idea who he supports
I heard today that BOA has reached ‘a deal’ to ‘reorganize’ home loans in default by giving people in Texas and a few other states lower principals on the loans and allowing them to pay ONLY INTEREST on the loans for up to a decade!!
Closing my account tomorrow! Don’t care to bank with a socialist institution.
The credit cards for illegals was bad enough, but we stayed because we have had a long history with our banker. No more! That’s it!
Didn’t Bank of America give credit cards to illegal aliens?
They've offered me $75 if I set up an online checking account with them, and I can do it for as little as 425, just have to keep the money there for six months. Maybe I ought to make that bet, I've wagered on longer shots at the horse track!