Boa Slices Divi and Seeks Cash ; Banking

Summary


BANK of America has halved its dividend and is planning to sell at least $10 billion ([pounds]5.74 billion) in shares as it battles "recessionary conditions".

Chairman and chief executive Kenneth Lewis said: "These are the most difficult times for financial institutions that I have experienced in my 39 years in banking." BoA has unnerved some investors with a string of bigticket purchases in the past year as struggling companies hit the market. It has taken over mortgage lender Countrywide and investment bank Merrill Lynch but is itself facing rising bad loans, and says quarterly earnings slid by 68% more than analysts had been expecting.

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Boa Slices Divi and Seeks Cash ; Banking

Lewis warned that ...

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