B of A loses $1B on Consumers Defaults

Bank America — the largest US bank, posted a giant $1 billion loss. Note that this was not caused by subprime/toxic assets, but by run-of-the-mill consumer defaults.

The negative consumer losses were offset in part by trading profits from the Merrill Lynch division. (No word if the Countrywide acquisition contributed anything to the quarter).

Near 10% unemployment and record foreclosures have hurt the largest U.S. consumer lender.

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