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May 16, 2008
BofA: More Losses Likely in Home-Equity Loans
The $118 billion home equity portfolio of Bank of America has become the biggest problem area for the Charlotte, N.C.-based bank, which saw its profits sink 77 percent to $1.21 billion in the first quarter. Profits were hurt by the $6 billion Bank of America had to set aside to cover current and future loan losses; in response, the bank is now focusing more on lending smaller amounts of money to borrowers, tightening lending standards and devoting more staff to providing assistance to borrowers.
Posted by S. Germain at May 16, 2008 07:55 AM