BofA Raises Forecast of Home Equity Loan Losses
The second-largest U.S. bank, Bank of America Corp., upped its forecast of home-equity loan losses to more than 2.5 percent.
Liam McGee, president of the Charlotte, North Carolina-based company's consumer division, gave the new forecast at a conference in New York sponsored by UBS AG. The bank previously projected a loss rate of between 2 percent and 2.5 percent.
McGee also said the bank's credit-card customers are "showing stress'' as they increase spending on necessities instead of travel and entertainment.
Published on May 13, 2008
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