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."
Speaking of Lewis, he is set to step down at the end of the year. Since much has been made of his $53.2 million severance, now comes news that he won't take his 2009 salary or bonus (but that severance is still a go!). The pay of the top 100 BoA executives is also under review by the White House pay czar.
And here's how other banks did, via Bloomberg News: "JPMorgan Chase & Co., the second-biggest U.S. bank by assets, said this week that third-quarter profit climbed almost sevenfold to $3.59 billion. Goldman Sachs Group Inc. said its income more than doubled to $3.19 billion. Both New York banks repaid their U.S. bailout funds. Citigroup Inc., the third-biggest U.S. bank, posted a $101 million profit yesterday as CEO Vikram Pandit said he wants to repay $45 billion in U.S. bailout funds as soon as possible. Bank of America also owes $45 billion."
