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Published on Monday, October 06, 2008
By LA Daily News Staff Writer
NEW YORK - Bank of America Corp. on Monday reported its third-quarter results earlier than planned, revealing a 68 percent profit drop and plans to boost capital by selling stock and halving its dividend.
Like most other major financial institutions, Bank of America has been hit by significant losses in mortgages, credit cards and other souring debt.
Profit fell to $1.18 billion, or 15 cents per share, for the July-to-September period from $3.7 billion, or 82 cents per share, in the same period last year. That was much lower than analysts' estimates of 62 cents per share, according to Thomson Financial.
Bank of America shares dropped an additional 6 percent in after-hours trading, having fallen $2.26, or 6.6 percent, to close at $32.22 during Monday's session.
To raise capital, the Charlotte, N.C.-based company said it plans to sell $10 billion of common stock and cut its quarterly dividend to 32 cents from 64 cents
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