Bank of America Corp.'s chief financial officer said Monday that he expects "unprecedented dislocations" in capital markets to have "a meaningful impact" on the third-quarter results of his company's global corporate and investment bank.
Joe L. Price did not quantify the expected impact in prepared comments to the Charlotte company's investment conference in San Francisco. He said trading has been the most adversely affected business and that dislocations are coming from areas such as leveraged finance, the commercial paper market, and capital markets exposure to subprime.
Meanwhile, a coalition of community groups said it is considering asking the Federal Reserve to reconsider its ruling on B of A's pending purchase of LaSalle Bank Corp. from ABN Amro Holding NV, which it approved last Friday.
Malcolm Bush, the president of the Woodstock Institute, said the request would emphasize that the Fed relied on a 2001 Community Reinvestment Act review for B of A in its ruling. He said in an interview that the group's petition would also point out that the Fed's comment period for the deal ended July 3, or 10 days before a Dutch court ruled that ABN Amro shareholders need not vote on the sale. A B of A spokesman said he would not comment on the group's plans.
