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Tuesday, July 19, 2011

BofA Reports $8.8 Billion Net Loss, Worst Ever

Bank of America Corp reported its biggest-ever quarterly loss -- $8.8 billion -- as low interest rates squeezed lending margins at the largest U.S. bank.

The loss was widely expected after the bank said in June that it settled with mortgage bond investors for $8.5 billion and was taking more than $14 billion of other home loan-related charges in the quarter.

But the bank's results, including its shrinking interest income, underscore the difficulties Chief Executive Brian Moynihan faces even if the bank moves past its mortgage problems. The bank's shares fell 1.2 percent in early trading.

"It's a slow grind for them," said David Hendler, senior analyst at CreditSights in New York.

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