Bank of America reports profit drop, capital raise

[DNP]

Bank of America profits fall 68 pct; Will raise cash by selling stock, cutting dividend

NEW YORK (AP) -- Bank of America Corp. on Monday reported third-quarter results earlier than planned, revealing a wider-than-expected profit drop and plans to boost capital by selling $10 billion stock and halving its dividend.

Like most other major financial institutions, Bank of America has been hit by significant losses in mortgages, credit cards and other souring debt. Its CEO also decided to acquire Countrywide Financial Corp., Merrill Lynch and La Salle Bank over the past year, three deals that are driving the need for extra cash.

Full story

 

[Donald Aquilano]

My main account is with them. Nothing to worry about since my money is insured by the FDIC.

 

[stock_post]

Are they the next victim?
-- My personal and company account are with them, but I am not bothered.

 

[draggar]

A profit drop is not a loss, it is a loss in profits. BoA is still one of the more stable banks out there due to diversity.