The Bank of America has announced $5bn (£2.5bn) in writedowns resulting from sub-prime related securities.
The massive writedowns are the latest in a series of huge writedowns relating to the sub-prime mortgage collapse.
Bank of America in $5bn writedown
Bank becomes latest to suffer fallout from the sub-prime securities fallout
Accountancy Age, 23 Jan 2008
Advertisement
The bank said it planned to reduce its use of structured products.
It revealed trading account losses of $5.44bn which it says was driven by large scale cutting down of collateralised debt obligations - groups of loans packed into securities and repackaged for sale to investors - that it holds on its balance sheet.
Wachovia, the fourth largest U.S. bank, also reported a $1.7bn writedown yesterday, also as a result of the sub-prime problems
Further reading:
Tags:
Also read
White papers
Most read
- SMEs lean on taxman to ease payment terms
- Debenham's shoppers to wait for VAT cut
- ASDA front runner to buy Woolworths
- Orchid lenders send in PwC restructuring experts
- KPMG chief comments on impact of harsh trading climate
- Ex-KPMG defendants walk away from tax-shelter case
- London Scottish Bank collapses
- Advisers inundate Sage over VAT change
- Financial Director Web Seminar - Future shock: Creating the ‘no surprises’ enterprise
- Johnson takes CFO post at Fannie Mae
Most commented
- E&Y women told what not to wear
- Lewis Hamilton to remain Swiss tax exile
- Roadmap imminent as Cox mounts charge towards IFRS
- Lewis Hamilton stays in Swiss exile
- Obama: asset or liability?
- Intelligent technology: the next big thing
- Plug pulled on SMEs' electricity supplier
- Banks may need more taxpayers’ money
- More than one in four big companies 'dodge' tax
- New accounting rule pushes Deutsche Bank into profit
Special Reports
- How To guides
- Management Consultancy Top 75
- Best Practice regional focus
- Credit crunch special: guiding business through the storm
- PwC 10-year anniversary special report
- The Top 50 2008: Special report
- Tax exodus - a special report
- Practice careers guide: big versus small
- The credit crunch and fair value - a special report
- Budget 2008 special report
Latest
- SMEs lean on taxman to ease payment terms
- Debenham's shoppers to wait for VAT cut
- ASDA front runner to buy Woolworths
- Orchid lenders send in PwC restructuring experts
- KPMG chief comments on impact of harsh trading climate
- Ex-KPMG defendants walk away from tax-shelter case
- London Scottish Bank collapses
- Advisers inundate Sage over VAT change
- Johnson takes CFO post at Fannie Mae
- City talent could move on over tax hike
Spotlight
Profile: Andrew Higginson, CEO of Tesco Personal Finance
He’s spent more than a decade at the top of...
Top 30 Accounting Networks and Associations 2008
The race to become the biggest firm on the planet...
Find your next job
Advertisement
Search white papers
- Accounting and Finance
- Budgeting
- Business Intelligence Solutions
- Business Process Management (BPM)
- Business Process Outsourcing
- Financial Planning and Analysis
- Compliance Management/ Sarbanes-Oxley Compliance
- Enterprise Accounting Solutions
- Enterprise Financial Management Solutions
- Expense Management
- Payroll and Personnel Accounting
- Tax Preparation and Reporting
- More
Advertisement
Advertisements
Advertisement
Secondary navigation
Comments
Have your say on this article