Bank of America Investment Bank Posts Second Loss Under Montag

Bank of America Corp., the second- biggest U.S. lender by assets, reported a second consecutive loss at its investment bank as trading chief Thomas K. Montag grappled with the European sovereign-debt crisis.

Montag’s global banking and markets division, which includes trading and underwriting operations, posted a $443 million fourth-quarter loss, following a $302 million loss in the preceding three-month period, the Charlotte, North Carolina- based bank said today in a statement.

The unit had a $669 million profit in the fourth quarter of 2010.

The results echoed those of rivals JPMorgan Chase & Co., Citigroup Inc. and Goldman Sachs Group Inc., which reported declines in trading and investment banking amid investor concern that the most indebted European nations may default.

Chief Executive Officer Brian T. Moynihan said Dec. 6 that investment- banking results had improved from the third quarter, when revenue plunged more than 70 percent.

From: Bloomberg