For some reason Reuters calls BAC’s latest earnings “an unexpectedly sharp drop in first-quarter profiit.”
Ha!
There is no money in lending money anymore. That is why BAC lost $2.39b. in its mortgage biz. Net income was $2.0 b., for 17 cents per share compared to “expert” expectations of 27 cents a share. And get this Q1 of 2010 saw net income of $3.2 b., or 28 cents per share. Meaning year-to-year income dropped 40 percent per share. Get the picture?
This is why the bank has a new CFO, this is why it is in a full-court press to curtail costs, this is why everything is still on the table for Brian Moynihan. Wait til the market digests that it is not “mortgage cleanup costs” that have the bank’s earnings stressed.
And be on the look-out for another bailout.
