Next time someone says we’re close to finally emerging from the financial crisis, tell them you’re not so sure. As evidence, point them to this article about how Bank of America may have to set aside an extra $50 billion to cover its housing market losses.
It’s simply an astounding number — and it comes nearly three years after the Lehman Brothers collapse. Three years. And the nation’s largest bank still doesn’t have a handle on its losses. Sadly, there are plenty of other banks with similar mortgage-related woes, though not of the magnitude of Bank of America’s problems.
Hmmm. Do you think BofA now regrets buying Countrywide Financial?
Two things need to occur before we see a full economic and housing-market recovery: healthier banks and jobs. We still have a way to go on both fronts.
An update: Bank stocks across the board are getting croaked today for a variety of reasons.