Bank of America Traders Lost Money on 7 Days in QuarterHugh Son
Bank of America Corp. traders lost money on seven days during the second quarter, including $54 million on one of them, ending the perfect streak of gains set during the first three months of the year.
The bank’s traders made money on 57 trading days, or 89 percent of the time, down from every day during 2013’s first period, Charlotte, North Carolina-based Bank of America said today in a regulatory filing. The company is the second-largest U.S. lender after JPMorgan Chase & Co.
Chief Executive Officer Brian T. Moynihan, 53, has relied on trading to keep profits afloat as costs from bad mortgages piled up after the 2008 purchase of subprime lender Countrywide Financial Corp. The global markets division, overseen by co-Chief Operating Officer Thomas K. Montag, helped the bank post a 63 percent rise in second-quarter income to $4.01 billion.
Profit in the global markets division excluding adjustments climbed 57 percent to $935 million, the bank said last month. Improvement in equities trading was enough to erase a 12 percent drop in revenue from fixed income, currency and commodities sales and trading.
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