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Monday, July 6, 2009
BofA selling assets to cover losses: report

Bank of America Corp. is selling assets to cover losses, and will have to write off more than one-tenth of its customers' debt from its Wilmington-based credit card arm, Bloomberg LP reports here. BofA, the largest U.S. lender,  "faces a 10 percent jump in uncollectible loans to $7.6 billion when it reports second-quarter earnings," Bloomberg says, citing a report by Credit Suisse analyst Moshe Orenbuch, who's been tracking credit card spending, lending and loss since before they called it Visa.

"Bad debts included $1.9 billion tied to home equity, and about 10.4 percent of credit card loans will be written off... Bank of America, first in the nation by assets and deposits, will report a 32-cent-a-share profit for the quarter, including a $5.2 billion pretax gain from the sale of China Construction Bank Corp. shares... Excluding that gain and a $750 million assessment to bolster the Federal Deposit Insurance Corp.’s insurance fund, the bank probably lost 15 cents a share."

BofA employs around 6,000 people in Wilmington, where it bought the former MBNA America Bank when it was a lot larger and more profitable three years ago.

Posted by Joseph N. DiStefano @ 12:49 PM  Permalink | 1 comment
Comments   
Posted 06:19 PM, 07/06/2009
Shabba Rommel
Thanks Obama.
1 comments
About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column, which is printed in the business pages of The Philadelphia Inquirer every Sunday, Tuesday, Wednesday, Thursday and Friday. Joe has worked at the Inquirer, mostly, since 1988. He has also written for Bloomberg and Gannett, authored the book Comcasted, majored in economics at Penn, and fathered six children. Reach Joe at 215-854-5194 and JoeD@phillynews.com

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