Bank of America Earnings Drop 80 Percent

Charlotte, N.C.–Hurt by higher credit costs and writedowns, Charlotte, N.C.-based Bank of America said Monday that its first-quarter earnings had fallen nearly 80 percent to $1.2 billion, the Financial Times said.Bank of America–which is the largest U.S. bank by market value–said home equity, homebuilder and small business loan issues caused its provision for credit losses to increase by $4.78 billion to $6.01 billion.Fallout from the credit and U.S. housing market collapse has hurt the investment bank. With $1.47 billion in writedowns on its collateralized debt obligations and $439 million on its leveraged loan commitments, Bank of America’s numbers were down from the fourth quarter, when it had $5.15 billion in writedowns.