Bank of America May Write Down $6.5 Billion

According to an analyst covering Bank of America the banking giant may provision up to $6.5 billion for mortgage-related losses when it announces its quarterly earnings at the end of April.  Nevertheless the company is expected to post a profit for the quarter.From Market Watch on Bank of America’s $6.5 billion credit writedown:

 Bank of America Corp. could tally a $6.5 billion provision in the first quarter to cover potential losses in its home equity and mortgage portfolios, Punk Ziegel and Co. analyst Richard Bove was quoted as saying by the Bloomberg news agency.

The analyst also wrote that he doesn’t foresee an economic slide that would create the need for Bank of America’s record reserve buildup, citing the change in the value of the dollar and steps by the Federal Reserve as likely to ease the credit crisis, the report said. 

This post was found on BlownMortgage
Follow the link to get to the orginal message.