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.