The Real Deal Miami

Florida adds to Bank of America’s woes

October 08, 2008 11:06AM

Charlotte-based Bank of America saw its shares plummet after third-quarter profits dropped 68 percent. It said bad loans in Florida accounted for a sizable proportion of its losses. Florida and California made up 40 percent of Bank of America’s $121.9 billion home equity portfolio, but accounted for 66 percent of the loan losses. The bank also had to raise $10 billion in additional capital and cut its quarterly dividend to 32 cents a share from 64 cents a share.