Tuesday, 19 October 2010

Bank of America's Massive One-Off Charge and Banking Environment

BoA in Q3 2010 took a charge of more than $10bn for a revaluation of its credit and debit card business which is being adversely impacted by charge-curbing regulation. This netted out with profits to give a loss of $7.3bn. Apart from the "credit charge", BoA performance is very tied to the US mortgage market: data on foreclosures etc.

Goldman's Q3 profit was $1.73bn, down from last year (blamed on lower prop trading revs due to smaller volumes and lower volatility) although revenue from investment banking advisory increased.

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