Bank of America to Cut Dividend, Sell Stock

Winston-Salem Journal (NC) (10/07/08)
Bank of America reports that profit skidded 68 percent to $1.18 billion in the third quarter, and the absorption of Countrywide Financial is a key reason for its poor performance. In addition to reporting net income that was lower than analysts' estimates, the bank says it will cut its dividend in half to save $1.4 billion a quarter and sell $10 billion of stock to raise capital. CEO Kenneth Lewis says the current environment is the "most difficult time for financial institutions that I have experienced in my 39 years in banking." He adds that the bank is unlikely to loosen its underwriting standards anytime soon.