Bank of New York Warns on Third Quarter

The nation's big banks aren't due to post quarterly earnings for two weeks yet, but it's never too early for Bank of New York (BK Quote) to disappoint investors.

The nation's oldest commercial bank, echoing a warning issued last month by J.P. Morgan Chase (JPM Quote), warned Wednesday afternoon that its third-quarter profits will come in below expectations because of rising charges on bad loans to telecommunications companies.

The bank expects to take a pretax charge of $395 million because of bad loan write-offs and losses on investments. The charge will reduce earnings by 37 cents a share in the third quarter. ...