BoA Announces 77% Drop in Profits

NEW YORK -- In another sign of the pain gripping the financial industry, Bank of America said on Monday that its quarterly profit declined 77 percent and that it was bracing for heavy losses on consumer loans, according to the New York Times.

A big increase in credit costs was driven by weakness in home equity loans and borrowing by small businesses and home builders, and Bank of America said credit costs will continue to be an issue through 2008, the Wall Street Journal reported.

The results from the largest U.S. retail bank underscore the growing pressure on U.S. consumers as the housing slump deepens and economic growth slows -- pressure that is doing increased damage to banks' profit reports, the Journal reported.

-- NYSSCPA.org News Staff

Posted on 4/21/08