BofA Sees $600 Million Writedown Tied to Merrill Securities

  • Fourth-quarter pretax charge stems from 2009 acquisition
  • Trust preferred securities paid at least 7% interest

Bank of America Corp., the second-biggest U.S. lender, will post a $600 million pretax writedown in the fourth quarter as it redeems $2 billion of trust preferred securities tied to its 2009 acquisition of Merrill Lynch.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.