Bankamerica Corp Reports $1.1 Billion 2nd Quarter Loss
The company, which added $1.1 billion to its reserves, was among several major U.S. banks to report a large loss because of that accounting action. By sharply boosting reserves, banks reduce their current earnings but establish a cushion to protect future earnings from loans that must be written off or disposed of at a loss.
Bank America's $1.1 billion loss in the three months ended June 30 compared with a $640 million shortfall during the year-ago period.
For the first six months of this year, BankAmerica lost $1.07 billion, compared with a $577 million loss in 1986.
``Our results, like those of other major U.S. banking institutions, reflect the impact of significant increases in the allowance for credit losses related to developing country debt,'' said BankAmerica Chairman A. …