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Bank of America buffeted in first quarter

April 21, 2008 at 1:11 PM   |   Comments

NEW YORK, April 21 (UPI) -- Bank of America's first-quarter report for 2008 showed it was not immune to the economic problems that have plagued U.S. financial companies recently.

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.

© 2008 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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