Tuesday, January 22, 2008

Banking Giants Reporting A Drop in Profits

excerpt from:

Bank of America, Wachovia profits plunge - Yahoo! News

CHARLOTTE, N.C. - Bank of America Corp. said Tuesday its fourth-quarter earnings fell by 95 percent and Wachovia Corp. reported its earnings tumbled 98 percent, with both banks citing the lending crisis.

Net income at Bank of America declined to $268 million, or 5 cents per share, in the three months ended Dec. 31 from $5.26 billion, or $1.16 per share, a year ago.

Wachovia said Tuesday its fourth-quarter earnings tumbled due to a $1.7 billion reduction in the value of certain portfolios and $1.5 billion set aside to cover bad loans.

Fourth-quarter net income fell to $51 million, or 3 cents per share, from $2.3 billion, or $1.20 per share, during the same period the previous year.

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I guess that they never foresaw the day when their bankrupt customers wouldn't be able to pay their punitive bank fees and interest rates. 

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