Bank Losses Hurt Less

Winston-Salem Journal (NC) (07/22/08)
Bank of America Corp.'s second-quarter earnings managed to top Wall Street analysts' consensus estimates, as losses in its struggling mortgage operations were countered by solid performances in other parts of the company. Four of the country's five largest banks--Bank of America, Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co.--have now posted better-than-expected results. Bank of America noted that credit quality continued to weaken during the April-through-June period, especially in markets that registered the most substantial declines in home prices. The Charlotte-based bank more than tripled the amount it allocated for bad loans to $5.83 billion from $1.81 billion a year earlier, largely for consumer and commercial portfolios directly tied to the housing market--including residential mortgages and homebuilding.