US stock market earnings continue to roll in, and one of the latest is from Bank of America. Bank of America (BAC) is reporting more than $7 billion in subprime writedowns and credit losses this morning.
Subprime writedowns have been affecting financial sector stocks for quite some time, especially mortgage lenders and investment banks that bought up mortgage-backed securities.
And now, Bank of America is reporting credit losses as well. Many of the issues are due to the consumers' financial health, and the fact that the impacts of an economic slowdown are finally starting to affect spending habits -- as well as create worry about how consumers will be able to keep making payments on high interest debt.
Subprime writedowns have been affecting financial sector stocks for quite some time, especially mortgage lenders and investment banks that bought up mortgage-backed securities. This should be in privacy.
Posted by: Banks, Bill | April 21, 2008 10:28 AM | Permalink to Comment