Bank of America, Wachovia Crushed

[RobertB]

Bank of America, Wachovia Crushed
Ruthie Ackerman, 01.22.08, 4:15 PM ET

Investors know that what goes up must come down, but how far down the United States stock market has to fall is the question plaguing investors. While no one can answer that question, one thing can be said for sure: the banking sector doesn't look pretty.

Both Bank of America (nyse: BAC - news - people ) and Wachovia (nyse: WB - news - people ) reported abysmal fourth-quarter earnings on Tuesday with Bank of America’s earnings tumbling 95% and Wachovia’s profits plummeting 98%.

But even with dismal earnings from the banks their shares soared after the Federal Reserve cut interest rates on Tuesday by three-quarters of a percentage point. (See “ Confidence Game”) Bank of America shares jumped 4.35, or $1.53, to $37.50 at the close on Tuesday, while Wachovia gained 4.1%, or $1.25, to $32.05.

http://www.forbes.com/home/markets/2008/01/22/bankofamerica-wachovia-financials-markets-equity-cx-ra-0122markets23.html

[HisAlways]

I knew Bank of America would be in trouble, after announcing that it was giving credit cards to illegals. I know a few that closed out their accounts after that message.

[Eternally]

I knew Bank of America would be in trouble, after announcing that it was giving credit cards to illegals. I know a few that closed out their accounts after that message.


This is a misrepresentation. Other companies do the same. BAC just went public with something that had been going on for a long time.

I came in this morning and vmail had a 2 minute msg from one of the top brass about the profits and how we all need to work hard to do the right thing for BAC and for our customers.

Business as usual for now.

[Bodude]

Bank of America lost my business today when I received a mailer from them stating they were raising my credit card interest almost 6 points. I paid off the card and closed it. I hope they go out of business.

[Eternally]

bodude, were you late on any payments? Were you at the end of a promotional rate?

did anything else happen on your CBR (Credit Bureau Report) to lower your score?

Please don't wish me out of a job. :pray

[Maximilian]

I pulled most of my money out of their bank a while back.
I only keep a little or just enough to pay bills.

Otherwise I feel my money is safer now in a different place.

[Cd4u_2]

I still have Bank of America. I like their "keep the change" saving account.

But as far as their credit card, they are a hassle. Take Charge America (debt program) can get other credit cards lower down to 1% interests rate, but not bank of America.. the lowest they will go is 5%

[frodo82801]

B of A is a horrible bank. We were with them for years and went to Wachovia last year because the service at B of A is so bad and because they played games with our deposits, which ended up costing us lots of $ in overdrafts.

[heybales219]

I know a few that closed out their accounts after that message.
You can add one more to that count, I left them too b/c of the credit cards for illegals publicity. I even told them that when I closed my account. They lost all my NSF fees....:aha