Underlining the depth of the problems that have emerged from its acquisition of Merrill Lynch, Bank of America said Merrill had a fourth-quarter net loss of $15.31 billion, or $9.62 per diluted share, "driven by severe capital markets dislocations," before the acquisition was completed.
So here’s the situation: the economy is facing its worst slump in decades. The usual response to an economic downturn, cutting interest rates, isn’t working. Large-scale government aid looks like the only way to end the economic nosedive.
Techs Inch Into Positive Territory
EDS shares benefited from an analyst upgrade Tuesday, as the broader tech market edged into positive territory following a nosedive in the previous session.
noun [C usually singular]
1 a fast and sudden fall to the ground with the front pointing down:
The plane roared overhead and went into a nosedive.
2 a sudden fast fall in prices, value, etc:
There was alarm in the markets when the dollar took a nosedive.
nosedive
verb [I]
Spectators in the crowd watched in horror as the plane nosedived.
House prices nosedived without warning.
nose・dive
━━ n., vi. 【航空】急降下（する）; （価格の）暴落（する）.
dislocate Show phonetics
verb [T]
1 to force a bone suddenly out of its correct position:
She dislocated her knee falling down some steps.
2 to have a negative effect on the working of something
dislocated
adjective
a dislocated hip
dislocation
noun [C or U]
Snow has caused serious dislocation of/to train services.
━━ n. 脱臼; 混乱; 【地学】変層.
Citigroup, confirming its previous forecast of a big slide in profits, on Monday reported a 57 percent decline in net income for the third quarter.
Charles Prince, the banking giant's chairman and chief executive, called it a "disappointing quarter, even in the context of the dislocations in the subprime mortgage and credit markets."
Mr. Prince shook up the leadership and structure of Citi's investment banking unit last week, and as Citi holds its third-quarter conference call on Monday, many analysts and investors will be wondering whether changes are also needed in the consumer unit, The New York Times reported.
Among the options Citi could pursue on the consumer side: Selling its slow-growing credit card unit, or acquiring a major regional bank.
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Bank of America, the third large money-center bank to report earnings this week, said its net income fell 32 percent in the third quarter to $3.70 billion, a much sharper drop than many analysts had been expecting.
Investment banking profits plunged $1.33 billion, or 93 percent, to $100 million, Bank of America said.
"While the significant dislocations in the capital markets have hurt most participants, we are still very disappointed in our third-quarter performance," Kenneth D. Lewis, Bank of America's chief executive, said Wednesday in a press release. Shares of Bank of America fell in premarket trading.
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