Bank of America had a rough second quarter, winding up $9.1 billion in the red, mostly caused by the $8.5 billion settlement it had to pay out to 22 investment groups over mucked up securities. The bank has paid out $12.7 billion in settlements this year. [More]
Profit-machine BP took a $4.9 billion loss last year, thanks to an oil spill you may have heard about. The setback snapped the oil giant’s 18-year streak of turning profits, but the loss isn’t so bad when you consider the company set aside $40.9 billion into the Gulf of Mexico so far to clean up the spill. [More]
The “rogue trader” who cost his former employer, French bank SociÃ©tÃ© GÃ©nÃ©rale, $7.1 billion through a series of high-stakes bets that leveraged fictitious transactions outside his trading limit was sentenced today to 3 years in prison and a “symbolic” $6.7 billion fine. [More]
Do you hate Bank of America? Well take today’s earnings report and wallow around in it like Ann-Margret in beans, becuse the bank has posted a loss of $1 billion before dividends to preferred shareholders—”When those dividend payments are included, the loss was $2.24 billion,” reports the New York Times.
The nation’s banks lost a staggering $32.1 billion in the final three months of 2008, according to the FDIC. [AP]
Wondering why Sprint CEO Dan Hesse has time to wander around NYC telling people about Sprint products? Well, it’s apparently come to that. Sprint has lost another 1.1 million customers.
Did you participate in an office gambling pool or place a few bets with your friends? Well, bad news, big winner: those bets were illegal and your winnings are taxable.
Only two short years ago, Citibank was worth $244 billion. Now, after its stock lost half of its value in just the past week, the bank is estimated to be worth $20.5 billion. What happened? The New York Times attempted to answer that question Saturday, and it pointed the finger at the usual suspects — conflicts of interest between those who were supposed to manage risk — and those who stood to benefit from making risky bets.
Wachovia announced their $23.7 billion third quarter loss with an all-too-easy-to-mock pre-taped conference call. “Let’s just close our eyes and imagine what the combination of Wells Fargo and Wachovia will create,” said CEO Bob Steel. We suppose that does make it easier not to rudely stare at the number “23,700,000,000.” [WSJ Deal Journal]
Fannie Mae is the nation’s largest mortgage finance company and it’s just not doing too well, says the AP. Increasing losses from foreclosures are wiping out Fannie’s revenue.
By all accounts, Sprint has hit an iceberg and is leaking customers like the Titanic, but new CEO Dan Hesse says that they lost some of those customers on purpose because they were just crappy customers. As strange as this sounds, it does match up with what we’ve been hearing from (former) Sprint customers.
You Starbucks haters out there can rejoice, because the company just posted its first quarterly loss EVAR “of $6.7 million, or 1 cent per share, compared with a year-earlier net profit of $158.3 million, or 21 cents per share.” Store closures and restructuring are to blame, as well as the fact that nobody can afford anything anymore. [Reuters]
Delta: Hey where did our $6.4 billion go? [AP]
Sprint has announced a fourth quarter loss of $29.5 billion, says the Chicago Tribune. Most of the loss is due to a one-time $29.5 billion writedown of its purchase of Nextel. The wireless carrier says it expects 1.2 million additional customers to leave this quarter, citing dropped calls and poor customer service as their reason for seeking less frustrating pastures.
Chief Executive Dan Hesse, who took over in December, said business is worse than he expected and is deteriorating.
During a conference call with analysts and media, Chief Financial Officer Fritz Henderson said 2008 will be difficult, but the company sees the potential for significant earnings increases by 2010 or 2011 once it reduces its work force and labor costs and transfers its retiree health-care costs to a new UAW-run trust.
The French bank Societe Generale has announced that a trader “concealed massive trading positions built up over 2007 and 2008 through ‘a scheme of elaborate fictitious transactions,’” which ended up losing the bank 7.1 billion dollars. That’s as much damage by a single employee as the subprime-related losses the bank reported in the past two months. Oops.
Citigroup writes down $18.1 billion due to investments related to subprime debt. Observers and analysts unanimously agree that that is a lot of billions. [Reuters]