Monday, 19 January 2009

Bank Crisis Reignites as US Giants Post Massive Losses

Hopes that the global banking crisis was past its worst were dashed yesterday when Bank of America was forced to accept $138bn (£94bn) of government support and Citigroup unveiled new losses of $8.3bn.

The US announcements led another day of turmoil in the international financial sector, with Barclays' shares plunging 25 per cent in the last hour of trading on the London Stock Exchange.

Bank of America, the biggest US lender by assets, posted a $1.79bn loss for the last three months of 2008 – its first quarterly loss since 1991 – and slashed its dividend to one cent. The bank was forced to seek government support to prop up its acquisition of Merrill Lynch, which suffered a record $15.3bn quarterly loss.
http://www.independent.co.uk/news/business/news/bank-crisis-reignites-as-us-giants-post-massive-losses-1418310.html

[Posted at the SpookyWeather blog, January 19th, 2009.]

No comments: