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 Bank of America Corp. (NYSE:BAC) is releasing first-quarter earnings Monday morning. Now that J.P. Morgan (NYSE:JPM), Goldman Sachs Group Inc. (NYSE:GS) and Citigroup Inc. (NYSE:C) have issued earnings and beat analyst's expectations, Bank of America has a lot to prove, especially since CEO and Chairman Ken Lewis' position has come under fire in recent weeks due to the Merrill Lynch acquisition. (Two proxy advisory firms are supporting a proposal which would split the role of chairman and CEO. That vote is schedule for later in April.)Lewis told CNBC last month that March was not as lucrative for the bank as January and February had been and told the Charlotte Observer that he expected the bank to report a profit for 2009, according to Seeking Alpha. Overall analysts believe the bank will report a $1.79 billion loss last quarter, as CNN Money points out. Here's a preview of the earnings as we reported on Dealscape: Bank of America Corp. (NYSE:BAC) is expected to lose 3 cents a share in the first quarter and turn a profit of 60 cents a share in 2009, according to Reuters Estimates in USA Today. However, Oppenheimer cut quarterly earnings estimates for Bank of America to 2 cents a share from 10 cents because of expected higher losses on credit cards and other loans and said the bank may need to raise $36.6 billion in equity to bring capital ratios in line with its peers. Meanwhile analyst Meredith Whitney forecasts that the bank will earn only 4 cents per share this year, and 20 cents per share the next. CEO Ken Lewis said the bank would generate $50 billion in profits this year, before taxes and loan loss provisions, on $100 billion in revenues, according to the New York Post. The bank will report first-quarter results April 21. As Barron's reports the bank's recent acquisitions will hurt the earnings, but also sound very familiar: Investors may also feel as though they've already heard the saga that BofA is going to spin, because it will sound so very much like the story that JPMorgan related Thursday: that of a big bank that got that much bigger by acquiring a mortgage operation and a major investment banking operation Still Lewis' position will be heavily weighed upon the earnings announcements. BofA shareholder Jonathan Finger explains that he expects that BofA, "will have a pretty good quarter," but he believes Ken Lewis needs to go anyway. Watch the video below to find out more. - Maria Woehr Follow me on twitter @newsgirlmw Also see: BofA's first quarter tops all of 2008 See Corporate Dealmaker post on Merrill integration See Deal Video interview with Finger Investments See Dealscape post on Citi's results Bank of America investors react to earnings
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From: Jeff R,
How come no one on the street, in the government, or in the media ever talks about the Gramm-Leach-Bliley Act of 1999? People need to be educated on the efforts of the banking industry and the governments role in the housing bubble.
Posted on:
April 20, 2009 12:55 PM
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MER is a big investment for BAC, how is this bad for shareholders.