BofA Swings to Loss on High Credit Costs

In one good sign for the Merrill business, BofA did say that merger-related cost savings are on track to exceed goals for the year.

The bank did not make any statements about repaying at least $45 billion in loans the government has extended to BofA through the crisis, though Lewis has said the company is prepared to begin repayment as soon as regulators allow it.

With Lewis departing at year-end, investors are also anxious to find out whom the board has selected as his replacement. Though the bank provided no clues in its report, executives will almost certainly be grilled on a conference call with analysts that begins at 9:30 a.m. ET.

In response to reporters' inquiries on Thursday afternoon, the bank said Lewis will not receive any compensation for 2009. He will repay the $1 million he has so far received from his $1.5 million salary and forfeit whatever stock and option awards he would have been granted. His decision was forced by what a spokesman called the government's "pay master," Kenneth Feinberg

But after more than 40 years at the bank, Lewis isn't leaving to head to the poor house. He has still accumulated a retirement package worth an estimated $125 million, on top of the millions he received in base salary and stock awards in his more successful years as an executive.

BofA shares closed Thursday at $18.10, down 2.6%, ahead of the report. The stock is up nearly 40% since the company reported its second-quarter results in mid-July.

Written by Lauren Tara LaCapra in New York.

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