Citing "the most difficult times for financial institutions that I have experienced in my 39 years in banking", Kenneth D. Lewis, Chairman and CEO of Bank of America stated that the bank is aiming for an 8 percent Tier 1 capital ratio target.
Yesterday, B of A announced 3rd quarter earnings, along with initiatives to raise capital levels. With 3rd quarter net income dropping from $3.70 billion a year ago to $1.18 billion this year, the bank will be cutting its dividend and selling common stock to raise capital.
Despite the turbulence of the past two months, Bank of America gained $21 billion in retail deposits during the quarter as consumers moved money to safety (excluding the impact of the Countrywide acquisition). That gain was almost three times the industry average.
Tuesday, October 7, 2008
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