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Bank of America sees $194m loss | Bank of America sees $194m loss |
(9 minutes later) | |
Wall Street giant Bank of America has reported a net loss of $194m (£120m) in the last three months of 2009. | Wall Street giant Bank of America has reported a net loss of $194m (£120m) in the last three months of 2009. |
That compared with a loss of $1.8bn in the same period a year earlier. | |
It added that it had repaid the $45bn government bail-out money it had received, but taking the impact of this into account, it made a loss of $5.2bn. | |
Earlier this week, fellow US bank JP Morgan Chase reported a profit of $3.3bn, while Citigroup said it made a $7.6bn loss in the final quarter. | Earlier this week, fellow US bank JP Morgan Chase reported a profit of $3.3bn, while Citigroup said it made a $7.6bn loss in the final quarter. |
For the whole of 2009, Bank of America made a net profit of $6.3bn, an increase on the $4bn profit it made in 2008. | |
'Disappointing' loss | |
"While it's disappointing to report a loss for the fourth quarter, there were a number of important accomplishments worth noting," said chief executive Brian Moynihan. | "While it's disappointing to report a loss for the fourth quarter, there were a number of important accomplishments worth noting," said chief executive Brian Moynihan. |
"First, we repaid the American taxpayer, with interest, for the Tarp [Troubled Asset Relief Program] investment. | "First, we repaid the American taxpayer, with interest, for the Tarp [Troubled Asset Relief Program] investment. |
"Second, we have taken steps to strengthen our balance sheet through successful securities offerings. And third, all of our non-credit businesses recorded positive contributions to our results." | |
Bank of America received the Tarp money after agreeing to buy Merrill Lynch in September 2008 in a deal worth $50bn. | |
The chief executive at the time, Ken Lewis, was widely criticised for going ahead with the purchase of Merrill, and he left the bank at the end of 2009. | |
His successor, Mr Moynihan, was upbeat looking at the year ahead. | |
"As we look at 2010, we are encouraged by signs the economy is improving, as we have seen in the stabilisation of our credit costs, particularly in the consumer businesses," he said. | |
"That said, economic conditions remain fragile and we expect high unemployment levels to continue, creating an ongoing drag on consumer spending and growth." | "That said, economic conditions remain fragile and we expect high unemployment levels to continue, creating an ongoing drag on consumer spending and growth." |