Tuesday, Nov 13, 2007
Bank merica the lastest to issue sub prime write downs
Reuters: Bank of America sees $3 billion debt write-down
Bank of America Corp, the second-largest U.S. bank, said on Tuesday it expects to write down $3 billion of debt in the fourth quarter, as fallout from the nation's housing slump deepens.
The pretax loss stemmed from collateralized debt obligations, including those tied to riskier subprime mortgages, and could grow if market conditions worsened, Chief Financial Officer Joe Price said at a Merrill Lynch & Co banking and financial services conference.
Price said Bank of America is setting aside more money for housing-related losses, including to homebuilders, and to money market mutual funds that may be exposed to risky debt. The bank nevertheless considers the losses "manageable," he said.
Posted by john k @ 06:44 PM (220 views) Add Comment
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