Bank of America see lose

Wall Street giant Bank of America has reported a net loss of $194 m (£120 m) in the last three months of 2009. That compared with a loss of $1.8 bn in the same period a year earlier. It added that it had repaid the $45 bn government bail-out money it had received, but taking the impact of this into account, it made a loss of $5.2 bn. Meanwhile, Morgan Stanley said it made a profit of $413 m in the fourth quarter, helped by a return to profit in its investment banking business. A year ago, the bank reported a $10.5 bn loss, the bulk of which came from investment banking, which made massive losses at the height of the financial crisis. Morgan Stanley also said it had set aside $14. 4 bn in compensation expenses for 2009 - a 31 % increase on the previous year. Earlier this week, fellow US bank JP Morgan Chase reported a profit of $3.3 bn, while Citigroup said it made a $7.6 bn loss in the final quarter. 'Disappointing' loss For the whole of 2009 , Bank of America made a net profit of $6.3 bn, an increase on the $4 bn profit it made in 2008. The bank also said it had set aside $10.1 bn to cover bad loans during the quarter. "While it's disappointing to report a loss for the fourth quarter, there were a number of important accomplishments worth noting," said chief executive Brian Moynihan. "First, we repaid the American taxpayer, with interest, for the Tarp [Troubled Asset Relief Program] investment. "Second, we have taken steps to strengthen our balance sheet through successful securities offerings. And third, all of our non- credit businesses recorded positive contributions to our results." 'Strange creature' Bank of America said paying back the Tarp money cost it $4 bn. It received the money after agreeing to buy Merrill Lynch in September 2008 in a deal worth $50 bn. The chief executive at the time, Ken Lewis, was widely criticised for going ahead with the purchase of Merrill, and he left the bank at the end of 2009.