Bank of America, which had posted a $3.2 billion profit last quarter, announced a $2.2 billion loss—$1 billion due to consumer defaults (CNN Money: "more and more Americans found themselves out of work and unable to keep up with their loan obligations") and paying the government and another $1.2 billion due to shareholder dividends. Departing CEO Ken Lewis said, "Obviously, credit costs remain high, and that is our major financial challenge going forward." more ›

Bank of America CEO Kenneth Lewis announced he would resign at the end of the year. One analyst tells Bloomberg News that Lewis had become a "distraction" after taking over Merrill Lynch and buying subprime mortgage company Countrywide, "He’s drifting out to sea like a dying Eskimo, knowing the company can do better and thrive without him." more ›

Attorney General Andrew Cuomo says that the U.S. government pressured Bank of America to buy Merrill Lynch. Cuomo had questioned BoA CEO Ken Lewis over Merrill's $15 billion loss for the 4th quarter of 2008—namely whether the company hid that information from shareholders—and Lewis said that he was warned by Treasury Secretary Henry Paulson (pictured) and Federal Reserve Chairman Ben Bernanke that failing to take over Merrill, as troubled as it was, would "impose a big risk to the financial system." Further, Paulson "may have threatened to remove the bank’s management and board if they didn’t comply," according to Cuomo's letter to Congress. Cuomo has been investigating BoA and Merrill after Merrill handed out extravagant bonuses to executives. more ›