BAC Q3 2007

Overall --NI declined 32% to 3.7 bil, driven by losses in Global Corporate and Investment Banking --Kenneth D.Lewis vowed to root out problems. Credi metrics --In Global Corporate and Investment Banking a.Capital Markets and Advisory Sevices posted -184 mil, where Credit and Structure Products posted -717 mil net losss, compared with NI 298 mil a year earlier. (Credit Products -607 mil revenue loss after hedging, SP (CDOs) -527 mil) --leveraged loan write-downs 247 mil (commercial banking, should be good) --loan losses provision 2.03 bil, 74% jump relative to one year ago --nonperforming asset 3.37 bil (100% increase). Evaluation --AA 10y 110 bps, peak 160, relativey fair Market events and Comments: --the bank has spent 675 mil in the past two years to grow in investment banking. Bad market bets plunged its trading account, underming it effort to build a investment-banking powerhouse. --job cuts are looming for 20k employees --two months ago, it invested 2 bil in CFC --investment banking: no big exposure to CDO or Mortgage, should steeer clear of the hist that bruised Citi and ML. Other businesses in investment bank weren't able to pick up the slack. Equity halved. Underwriting and Merging fees fell. Comments: