Bank of America Warns of 4Q Shortfall

Bank of America (BAC Quote) warned Wednesday that fourth-quarter earnings would fall below analysts' expectations because of higher credit costs and slowing capital markets.

The company, which runs the largest bank in the U.S., said it expects fourth-quarter earnings of about $1.4 billion, or 85 cents to 90 cents a share, compared with earnings of $1.23 a share in the same period last year. According to First Call/Thomson Financial, 26 analysts expect fourth-quarter earnings of $1.17 a share.

Bank of America says fiscal 2000 earnings are expected to approach $8 billion, or $4.72 to $4.77 a share, compared with $4.68 a share in 1999, while full-year 2001 earnings are expected to be $5.10 a share to $5.20 a share. Analysts, on average, expect $5.03 a share in 2000 and $5.46 a share in 2001. ...