Bank of America hit by $3bn sub-prime losses

[DimPrawn]

http://news.bbc.co.uk/1/hi/business/7093464.stm

Bank of America has revealed that it will have to write off $3bn caused by exposure to bad mortgage-related debt.

The US bank said the loss will dent its fourth quarter earnings, but added that it was "manageable".

It also said it expects to set aside $300m to cover further housing-related losses.

Bank of America is the latest bank to reveal heavy losses as a result of investments linked to the crisis-hit US sub-prime home loans market.


I bet this is the tip of the iceberg.

[AtW]

Thing is, property market in the USA is measured in trillions of dollars, this means that if it falls by 10% then assets owned by banks who gave morgages will drop by similar amount, meaning hundreds of billions of dollars wiped off valuation - they gave good money to buy those houses, but on their balance sheets they will have petals.

[2uk]

Thank you Bush , keep raging in the middle east. You make it easier for first-time buyers like me

[bored]

That's old news - the stock market is going up again

Last week was scary though.

[_V_]

That's old news - the stock market is going up again

Last week was scary though.

Too right. Stock market will only go up now. Buy buy buy!

Bye bye.

[Troll]

led by bank stocks.... weird