Bank of America said today its net income plummeted 95% in the fourth quarter, and it wrote down $5.28 billion in collateralized debt obligation. Net income for the largest retail bank and credit-card issuer was $268 million, or 5 cents per share, compared to $5.26 billion, or $1.16 a share, last year. The company had previously estimated write-downs in excess of $3 billion, the Wall Street Journal reports.
Said the CEO, “Our fourth-quarter results were severely impacted by ongoing dislocations in capital markets and the slowing economy.” Separately, the bank had $400 million in losses to support specific cash funds and wrote down $400 million on relevant securities. Net revenue plunged 31% and return on equity fell from 15.76% to 0.6%. (More Bank of America stories.)