According to an article in the Star-Telegram, Bank of America reported a $2.39 billion fourth-quarter loss after receiving a $20 billion bailout AGAIN from the Bush Administration.
The article said:
BofA cited rising credit costs, significant write downs and trading losses in its capital markets businesses amid the deepening economic recession. Merrill Lynch posted a loss of $15.31 billion, or $9.62 per share, for the period – underscoring Bank of America’s assertion that it needed extra U.S. aid in order to absorb the investment bank’s bad mortgage bets.
Remember when Bank of America “saved” Merrill Lynch from bankruptcy by buying it “dirt cheap” during the beginning of this credit crisis? Well, it seems that “deal” is about to make Bank of America face it’s own possible bankruptcy if it doesn’t play its cards exactly right. What I don’t understand is where the initial bailout money went. Bank of America has now received over $45 billion dollars from the government and we are still seeing a rise in foreclosures and bankruptcies. Things have not gotten better, they have gotten worse.
The article continued with a statement that is definitely a sign of trouble:
Bank of America said the rescue package will help it operate as normally as possible.
Operate as normally as possible? That doesn’t sound very good. This is the largest bank in the country and the fact that it will “operate as normally as possible” is not a good sign to the rest of us who are funding this bailout and who may even work for Bank of America or have love-ones working their. There is a huge possibility of job losses coming from Bank of America, so be prepared. I wouldn’t even be surprised if this bank eventually announces that it’s filing bankruptcy. What would Bank of America have done if they couldn’t get the bailout money?