Monday, April 20, 2009

Real Profits (Loss?) of Bank Of America

Even Bank of America would have posted a net loss had it not been for similar adjustments. $2.2 B is the profit booked related to FAS 159 adjustment. Dont know the number for the MTM adjustment of securities yet, but am sure that number would have converted the $2.5 B net profit of BoFA (profit available to common shareholder)  into a net loss.

This apart, BoFA has been candid about its increasing credit losses and has clearly mentioned possibility of a great hit on that account in the coming quarters