Results 1 to 18 of 18

Thread: Bank of America joins "DNR" list

  1. #1
    Vulture of The Western World Eric's Avatar
    Join Date
    Jul 2006
    Location
    The Land of The Edentulites
    Posts
    22,732

    Bank of America joins "DNR" list

    Bank of America Corp. said Monday its profit fell 77 percent in the first quarter, hurt by trading losses and a $3.3 billion increase in reserves for problem loans.

    The Charlotte-based bank, set to acquire troubled subprime mortgage lender Countrywide Financial Corp. later this year, reported earnings of $1.21 billion, or 23 cents per share, on $17 billion in revenue. That compared with net income of $5.26 billion, or $1.16 a share, a year earlier on $18.16 billion in revenue.

    Analysts on average expected a profit of 41 cents per share on revenue of $16.5 billion, according to Thomson Financial.

    The bank's shares rose 4 cents to $38.60 in premarket trading.

    Major national banks like Bank of America continue to be besieged on two sides: The bread-and-butter banking business is struggling because of the slumping housing market. With home prices flagging, more people and real estate developers are failing to repay their loans.

    The credit crisis is also hobbling the value of many bank investments.

    Last week, crosstown rival Wachovia Corp. said it lost $393 million in the first quarter because of bad credit and tumultuous financial markets. Washington Mutual Inc. lost $1.1 billion.

    Wells Fargo & Co.'s profit fell 11 percent, JPMorgan Chase & Co.'s profit slid 50 percent, and Citigroup Inc. posted a loss of $5.1 billion.

    Bank of America's chief executive, Ken Lewis, said in a statement that the first-quarter results "clearly did not meet our expectations."

    He added: "The weakness in the economy and prolonged disruptions in the capital markets took their toll."

    Results included $1.31 billion of trading losses compared with income of $1.66 billion a year earlier. This was driven primarily by $1.47 billion in write-downs of collateralized debt obligations, a security often backed by subprime mortgage loans, and $439 million for loans to fund leveraged buyouts. Trading losses were $5.15 billion in the fourth quarter of 2007.

    Bank of America said the $3.3 billion increase in reserves was part of a $4.78 billion increase in provisions, to $6.01 billion, "due to rising credit costs -- particularly in the home equity, small business and homebuilder portfolios."

    Net charge-offs, loans it doesn't think are collectable, jumped to $2.72 billion, up from $1.43 billion a year ago, reflecting housing market deterioration and slowing economic conditions, the company said.

    Bank of America said it "remains concerned" about the health of the consumer.

    In the bank's consumer unit, which includes the nation's biggest credit card business and retail branch network, revenue rose 17 percent, while earnings dropped 59 percent due to increased credit costs.

    Investment-banking profit plunged 92 percent on the write-downs as revenue fell 41 percent.

    Results also included a $776 million gain from credit card network Visa Inc.'s initial public offering last month.

    Bank of America Corp.: http://www.bankofamerica.com


  2. #2
    Senior Member
    Join Date
    Jul 2006
    Location
    Raleigh NC, USA
    Posts
    3,628

    Re: Bank of America joins "DNR" list

    Wachovia (aka First Union in disguise) is in trouble because they bought Golden West Financial at exactly the wrong time.

    Chip H.

    Former owner: 2012 Honda Civic LX, 2006 Honda Ridgeline RTL, 2000 Honda CR-V EX, 2003 MINI Cooper S, 1992 Honda Accord LX, 1999 Mercedes ML-320, 1995 VW Jetta GLX, 1991 Mercury Capri XR2, 1981 Mercury Zephyr, 1975 Chevrolet Impala

  3. #3
    ColleenC2
    Guest

    Re: Bank of America joins "DNR" list

    Should have bought gold as I did back in the 1990's , it was a little less than $300.00 an ounce, forget the banks

  4. #4
    Senior Member
    Join Date
    Jul 2006
    Posts
    3,614

    Re: Bank of America joins "DNR" list

    Quote Originally Posted by ColleenC2
    Should have bought gold as I did back in the 1990's , it was a little less than $300.00 an ounce, forget the banks
    Or open a euro account somewhere and get interest, as well.

  5. #5
    ColleenC2
    Guest

    Re: Bank of America joins "DNR" list

    I'm too worried about overseas investments such as the Euro it is too risky, but I have thought of it many times and have even encourage others to do so.

    Ireland back in the 90's had the greatest investment terms overall with their market but I have not kept up with that, maybe I should look into that one again, but I am trying to keep to stictly "precious metals"

  6. #6
    Senior Member
    Join Date
    Jul 2006
    Location
    Raleigh NC, USA
    Posts
    3,628

    Re: Bank of America joins "DNR" list

    I have some money in international mutual funds.
    I'm keeping an eye on the dollar-to-whatever exchange rate, and I'll sell when I see it going too far in the other direction.

    Chip H.

    Former owner: 2012 Honda Civic LX, 2006 Honda Ridgeline RTL, 2000 Honda CR-V EX, 2003 MINI Cooper S, 1992 Honda Accord LX, 1999 Mercedes ML-320, 1995 VW Jetta GLX, 1991 Mercury Capri XR2, 1981 Mercury Zephyr, 1975 Chevrolet Impala

  7. #7
    Senior Member
    Join Date
    Jul 2006
    Posts
    3,614

    Re: Bank of America joins "DNR" list

    Quote Originally Posted by chiph
    I have some money in international mutual funds.
    I'm keeping an eye on the dollar-to-whatever exchange rate, and I'll sell when I see it going too far in the other direction.

    Chip H.
    Just how long do you plan to live?

  8. #8
    Senior Member
    Join Date
    Jul 2006
    Location
    Raleigh NC, USA
    Posts
    3,628

    Re: Bank of America joins "DNR" list

    It'll happen. Maybe not tomorrow, but these things are cyclical.

    Even if it doesn't, they'll still be earning me money.

    BTW, the advice I'm seeing recently is that you should have at least $1.7 million to retire on. This is up from the historical wild-assed-guess of $1 million.

    Chip H.

    Former owner: 2012 Honda Civic LX, 2006 Honda Ridgeline RTL, 2000 Honda CR-V EX, 2003 MINI Cooper S, 1992 Honda Accord LX, 1999 Mercedes ML-320, 1995 VW Jetta GLX, 1991 Mercury Capri XR2, 1981 Mercury Zephyr, 1975 Chevrolet Impala

  9. #9
    Senior Member
    Join Date
    Jul 2006
    Posts
    3,614

    Re: Bank of America joins "DNR" list

    Quote Originally Posted by chiph

    Even if it doesn't, they'll still be earning me money.

    BTW, the advice I'm seeing recently is that you should have at least $1.7 million to retire on. This is up from the historical wild-assed-guess of $1 million.

    Chip H.
    c

    Earning money' are the magic words.

    The amount needed for retirement is still a WAG, if put in general terms. The mil you mentioned might return 35k/yr if in conservative bonds which are not a very good place to put all of one's money. Social Security will provide something contrary to present fears.

    Depending on where one lives, that might provide a decent income if it were not for inflation which according to the government is trivial but we all know that to be false.

  10. #10
    Senior Member
    Join Date
    Jul 2006
    Location
    Raleigh NC, USA
    Posts
    3,628

    Re: Bank of America joins "DNR" list

    Withdrawals in retirement, according to typical advice, should be no more than 4% of principle, in order to not outlive your money.
    So for a mil in the bank, that's $40k, which after taxes is the $35k you mention.

    The assumption also is that your house is paid off, and you've got no other large monthly bills. Which as we know isn't true, as medical costs are growing faster than even inflation.

    So I'm thinking that even $1.7 mil might be low.


    Chip H.

    Former owner: 2012 Honda Civic LX, 2006 Honda Ridgeline RTL, 2000 Honda CR-V EX, 2003 MINI Cooper S, 1992 Honda Accord LX, 1999 Mercedes ML-320, 1995 VW Jetta GLX, 1991 Mercury Capri XR2, 1981 Mercury Zephyr, 1975 Chevrolet Impala

  11. #11
    Senior Member
    Join Date
    Jul 2006
    Posts
    3,614

    Re: Bank of America joins "DNR" list

    I was thinking in terms of $35k/yr as pretax interest income - and leaving the mil intact save for inflation.

    It's pretty simple to see how far it will go using a mortgage reduction program, eg, at 4% 1.7 mil will pay out $8k and change a month for 30 years. In the beginning it will be mostly taxable interest. Of course, inflation eats away at it if invested in fixed income stuff.

    Having a paid for house may not be the best of all worlds depending on upkeep and tax costs.

  12. #12
    Senior Member
    Join Date
    Jul 2006
    Posts
    4,934

    Re: Bank of America joins "DNR" list

    Why do you guys go on 'value' when 2/3rds of everyday produce is made in China?

  13. #13
    Senior Member
    Join Date
    Jul 2006
    Posts
    3,614

    Re: Bank of America joins "DNR" list

    Quote Originally Posted by robmcg
    Why do you guys go on 'value' when 2/3rds of everyday produce is made in China?
    Well, China holds a lot of dollars or dollar equivalents and we are rapidly running the dollar down to a value of worthless.

    We do not intend to go bankrupt as did NZ not so long ago but intend to bankrupt our creditors. It's something like the sub-prime mortgage thing.

  14. #14
    Senior Member
    Join Date
    Jul 2006
    Posts
    4,934

    Re: Bank of America joins "DNR" list

    Quote Originally Posted by jdm
    We do not intend to go bankrupt as did NZ not so long ago but intend to bankrupt our creditors. It's something like the sub-prime mortgage thing.
    In 1984 we were sort-of technically bankrupt under charismatic Prime Minister Muldoon but we devalued by 20% and all was well.

  15. #15
    Senior Member
    Join Date
    Jul 2006
    Posts
    3,614

    Re: Bank of America joins "DNR" list

    Much the same thing but the US will do it on a grander scale.

  16. #16
    Senior Member
    Join Date
    Jul 2006
    Posts
    4,934

    Re: Bank of America joins "DNR" list

    Quote Originally Posted by jdm
    Much the same thing but the US will do it on a grander scale.
    Yeah but will it hurt me?

    The lovely female company I had yesterday do not, I think, have a well developed idea about the preservation of freedom internationally, and to that end we are all dependent on the USA.

    On a different issue, the girls could not understand why I had not taken the hospital to court when a Registrar broke both my knees in an exam to become a surgeon. I was at the time only a week or so after not knowing my own address nor my brothers' names.
    You spoke to me by phone around the time when I remembered everything including computer passwords, but my speech was still slow. That was 3 weeks after the night when all went strange , but I had been writing madly and drinking heavily. njoiw I spend long periods without drinking, and instead, driving V8 sedans and building toy trains.
    Lorna is in a comparable position with tobacco.

    My speech is nearly normal now. My brain is perfect.

  17. #17
    Senior Member
    Join Date
    Jul 2006
    Posts
    3,614

    Re: Bank of America joins "DNR" list

    Quote Originally Posted by robmcg

    Yeah but will it hurt me?

    If it does not, it's not worth doing.

  18. #18
    Senior Member
    Join Date
    Jul 2006
    Posts
    4,934

    Re: Bank of America joins "DNR" list

    Quote Originally Posted by jdm
    Quote Originally Posted by robmcg

    Yeah but will it hurt me?

    If it does not, it's not worth doing.
    Sysop! Sysop!

    Thread drift!

    Here I was watching a BR 9F freight engine going around in circles, wondering if I should add front footsteps and how I might adapt and fit cylinder drain-pipes... and my duty to life had me pushing my chair in th wind-blown autumnal streets, where I met a nurse from the Spinal Unit.

    Well, her male friend was in a V8 Ford, so I thought it poor form to take her on the spot. Seems she is a senior nurse in the Spinal Unit been there many years. It's actually quite demanding work. She had just come from the 50th birthday party of a girl who was and is a fine person, but whom I left in 1985 after a one year relationship... it's all very complex.
    The girls who visited yesterday know nothing of Tina, and though many would judge otherwise I was entirely monogamus.
    When I was fit, healthy, aged 34yrs I was still paralysed, but seemed to have a choice of females.

    Now I do toy trains.
    The male with the nurse I met in the street today said I looked good, and his heckles were up. And he had a Ford V8 and was younger ... I said that I hoped you didn't have that car... it's like rooting for South Aftrican in rugby, she ... after my suggestion , wrote her name in my wallet,

    meanwhile, visitor girl got all weepy after I said I would support her knowing that her ex used to beat her up.






Similar Threads

  1. Are you on a TSA "watch list"? Must See video
    By Eric in forum Tea Party Talk...
    Replies: 2
    Last Post: 12-05-2010, 12:15 PM
  2. Patriot "hit list"?
    By Eric in forum Secession Talk
    Replies: 0
    Last Post: 04-23-2010, 06:11 AM
  3. Replies: 3
    Last Post: 02-10-2008, 10:12 AM
  4. Replies: 0
    Last Post: 12-15-2007, 05:49 AM
  5. "To Do" list for old cars
    By Eric in forum Classic Car Corner
    Replies: 5
    Last Post: 11-07-2006, 02:38 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •