BofA swings to $1 billion loss

BofA swings to $1 billion loss

Bank of America Corp posted a $1 billion third-quarter loss as consumer credit woes eclipsed investment banking earnings, underlining why the bank remains on a government respirator and sending its shares down 4.2 percent.

The nation's largest bank received two taxpayer bailouts totaling $45 billion after acquiring Merrill Lynch & Co and mortgage lender Countrywide at the height of the financial crisis last year. The bank says it want to start repaying the money but has not yet done so.

Credit losses on its consumer loans are eating into the bank's results as it tries to raise capital. Bank of America suffered $9.6 billion in credit losses in the third quarter, up from $4.4 billion a year earlier.

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Bank of America (BAC) is trading 4% lower at 17.35