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 ...
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!
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