Bank of America Flips 180 Degrees on $6 Billion Bad Mortgage Hit

Wayne Ellis

[housing decline graph]

Bank of America Flips 180 Degrees on $6 Billion Bad Mortgage Hit (Bloomberg)

Just as the economic disparity between the haves and the have-nots is rising in the United States, so too is the profitability gap within the banking industry. And this morning, Bank of America (BAC) provided a great example of just how quickly a bank can go from “have” to “have not.” Just last year, the company’s first quarter profit was $1.48 billion, or 10 cents a share profit. BAC’s loss for the just-completed first quarter was $276 million, or 5 cents a share. BAC’s struggles began seriously about five years ago, with its acquisition of Countrywide Financial Corp and that bank’s portfolio of bad mortgages. If you’ve been considering taking the plunge into U.S. financials, you may want to consider players like Wells Fargo & Co. (WFC), the nation’s #1 home lending institution (up 14 percent in Q1), or Citigroup, Inc. (C), up 3.5 percent year-to-date.

Exclusive  Adam Smith’s Incredible Prophecy Comes True!
share on:

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor