Magazine article American Banker

B of A Seen Posting a 4Q Loss

Magazine article American Banker

B of A Seen Posting a 4Q Loss

Article excerpt

Byline: Bloomberg News

Bank of America Corp. may report a $3.6 billion fourth-quarter loss and again slash its quarterly dividend, Citigroup Inc. analyst Keith Horowitz wrote Monday.

The Charlotte company is likely to report a loss of 75 cents a share, compared with an earlier estimate of a profit of 2 cents a share, Mr. Horowitz wrote in a note to clients.

B of A may reduce its dividend to 5 cents a share, from 32 cents, he said.

On Monday the company's shares closed down12%, at $11.43.

B of A may have cumulative losses of $165 billion from 2008 to 2011, Mr. Horowitz wrote. "So far, about 33% have been taken either through loan-loss provision or purchase accounting marks."

About one-third of the predicted losses, or $57 billion, will probably come from credit card lending and about $29 billion from home loans made by Countrywide Financial Corp., he wrote.

The company's acquisition of Merrill Lynch & Co. …

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