Monday, April 21, 2008
The Midwestern National City bank will be getting a $7 billion infusion, which seems to be the lucky number when it comes to multi-billion dollar private bailout packages. The name of its rescuer, Corsair Capital, doesn't sound wholly reassuring, but no doubt their money is welcome. Bank of America is projecting a net income decline of 77%. BOA had been weathering financial events so far with aplomb but this latest news seems to have spooked Wall Street a little. Both their credit card and mortgage divisions are under stress, and CEO Kenneth Lewis looks like he's seen better days.