Bank of America may set aside $6.5 billion for future losses

03/24/2008 | Reuters

Richard Bove, an analyst with Punk Ziegel & Co., said Bank of America Corp. would likely set aside $6.5 billion for possible loan losses in the future. "I do not foresee the economy plunging to a level that will substantiate this reserve build," Bove wrote in a report dated today. "It is my impression that the management has made a decision to try to take, upfront, the potential losses that it believes may be nascent." Bove also reduced his earnings forecasts for the largest retail bank in the U.S.

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