The bank's profits fell 77 percent from the same quarter of 2007, much of it due to $1.47 billion in subprime mortgage write-downs.
The company also took $439 million in write-downs in loans to buyout firms, The New York Times reported Monday.
Although revenue grew, "these results clearly did not meet our expectations, Chief Executive Kenneth Lewis said in a statement.
Bank of America's investment banking division suffered the biggest losses.
Besides the write-downs, the unit's net income dropped 90 percent to $115 million.
Bank of America plans to raise capital by selling $6 billion in preferred stock, its stake in a Chinese bank and its prime brokerage unit, the report said.