How rising deposits costs are hitting Bank of America americanbanker.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from americanbanker.com Daily Mail and Mail on Sunday newspapers.
The banking giant on Wednesday reported profits of $1.07 billion for the second quarter that ended June 30, down from $2.79 billion a year ago and well below analyst expectations.
By Saeed Azhar and Manya Saini NEW YORK (Reuters) -Bank of America s second-quarter profit beat Wall Street estimates as it earned more from customers .
The banking industry, which has been contending with deposit outflows, could get a short-term boost from spooked investors. But once the White House and House Republicans reach a deal on raising the debt ceiling, the pressure on deposits may resume, analysts say.
Loans are being paid. Little debt is going bust. But Wall Street has a new 'criticized' loans category that shows how worst-case economic risk is being watched.