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| Bank of America reports $1.2bn loss | Bank of America reports $1.2bn loss |
| (40 minutes later) | |
| Bank of America has reported a second straight quarterly loss, driven by a $2bn (£1.25bn) writedown of its mortgage business. | Bank of America has reported a second straight quarterly loss, driven by a $2bn (£1.25bn) writedown of its mortgage business. |
| The bank announced a net loss of $1.2bn in the last three months of 2010, compared with a $5.2bn loss a year ago. | |
| However, last year's results included a $4bn charge related to the government's Troubled Asset Relief Program (Tarp). | However, last year's results included a $4bn charge related to the government's Troubled Asset Relief Program (Tarp). |
| Chief executive Brian Moynihan said 2010 was a "necessary repair and rebuilding year". | |
| "Our results reflect the progress we are making at putting legacy - primarily mortgage-related - issues behind us," he said. | |
| The bank had previously warned that it would write down the value of its mortgage business, given the foreclosure crisis in the US, which has seen homeowners - facing high unemployment and slow job growth - fall behind on their mortgage payments. | |
| 'Manageable' | |
| Excluding the writedown the bank made a $756m profit. | |
| The charge in the fourth quarter was not the only one the bank had to make last year. | |
| The group's third-quarter results also included a hefty $10bn writedown of its cards business. | |
| For the whole of 2010, writedowns totalled $12.4bn, leaving the bank with a net loss of $2.2bn for the year. | |
| "Clearly, the headline number disappoints," said Gary Townsend, president of Hill-Townsend Capital, but he added, "I think the mortgage putback aspect is very manageable." | |
| Bank of America shares fell 2.8% in electronic pre-market trading. | Bank of America shares fell 2.8% in electronic pre-market trading. |