Bank of America CFO Joe Price said in a speech Monday the credit market turmoil of the last couple months will have a "meaningful impact" on the bank's third quarter results. "These are unprecedented times. The flight to quality has had an impact on any number of liquidity (products)." As the large investment banks begin reporting their last quarter results this week, investors will get to inspect how they have held up in the recent, volatile economic conditions. Price said his bank's "losses in mortgages remain well below industry average." He also commented of the strength of the consumer, saying his bank was not seeing "any broad signs of a slowdown in consumer spending." He noted that there were "pockets of stress" such as small declines in recreational spending and food expenditure, but did not think they were significantly dragging the consumer down. Bank of America finished Monday's session down 0.88% to $49.51.
Sources: Wall Street Journal, Bloomberg, MarketWatch
Commentary: ABN Amro Board Calls RBS Bid Superior, But Won't Back It • When Flying to Quality, Be "In the Bank"
Stocks/ETFs to watch: BAC. Competitors: GS, LEH, WB. ETFs: RKH, XLF
Earnings call transcript: Bank of America Q2 2007