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Bank of America to writedown $3 billion

Bank of America, the second-largest US financial institution, said Tuesday it will have to writedown about $3 billion in debt securities related to sub-prime mortgages in the Q4.

If market conditions should deteriorate further and losses on the loans continue to grow then the bank could be forced to take even more losses, Chief Financial Officer Joe Price said at an investor conference in New York. The bank joins other larger financial institutions in reporting losses related to the home loans to borrowers with poor credit. US banks have reported $45 billion in losses related to the mortgages so far. (m&c.com)