Tuesday, January 3, 2012

KBW analysts predict Bank of America will lose money in Q4

Despite analysts' consensus that Bank of America will report earnings of 18 cents per share in the fourth quarter, the team at investment firm Keefe, Bruyette & Woods predict the Charlotte bank will lose money.

In a research note Tuesday, KBW put its estimate at a loss of 3 cents per share, citing a likely increase in rep and warranty expenses.

The firm was bearish on large banks in general. Analysts lowered their outlook for JPMorgan Chase, Citigroup, Goldman Sachs and Morgan Stanley on expected declines in investment banking and trading.