the largest U.S. bank by assets, Bank of America’s posted a quarterly loss of $1.79 billion last week, its first since 1991, and received $138 billion in emergency government funds.
That doesn’t count the $15.3 billion deficit at Merrill Lynch & Co, that they acquired last year.
To make matters worse, the company cut its quarterly dividend from $.32 to $.01.
Bank of America is in real trouble, the media is doing their best to not let out the truth about their financial situation. But consider this, Bank of America received $25 billion in aid last year, and the that wasn’t enough to keep them from reporting Q4 losses.
Jeff Davis, director of equity research at Howe Barnes Hoefer & Arnett, said:
“Merrill has a noose around its neck in the form of the Merrill balance sheet. There’s a creeping concern that Citigroup and Bank of America, at least from a common shareholders perspective, may be headed down the path of nationalization.”