More Trouble Ahead For Financials
Bank of America said its provisions against loan losses would come to $3.3 billion in the fourth quarter amid deterioration in consumer real estate and small business loans. Bank of America’s capital ratios continue to decline, and the bank may not resume stock buybacks until 2009. Wachovia, the fifth-largest U.S. bank by market value, said [...]
We’re Heading Toward Financial Chaos
We are only at the beginning of the financial world coming to its senses after the bursting of the biggest credit bubble the world has seen. Everyone seems to acknowledge now that there will be lots of mortgage foreclosures and that house prices will fall nationally for the first time since the Great Depression. Some [...]
The Power of Rate-Cut
Swiss banking giant UBS warned today that it will write down the value of its subprime mortgage holdings by a further $10 billion, leading to a loss in the fourth quarter and potentially wiping out all its profits for the year. Bank of America Corp. said today that it’s shutting a $12 billion a money-market [...]