Bank of America loses $2.24B as loan losses rise

CHARLOTTE -- Bank of America Corp. says it lost more than $2 billion in the third quarter as its loan losses continued to rise. The nation's second-largest bank, which lost $2.24 billion after accounting for preferred dividends, said its losses for failed loans came to almost $10 billion during the July-September period, up almost $1 billion from the second quarter. The bank also added $11.7 billion to its reserves to cover bad loans. The company, hurt like other banks by consumers' inability to pay their bills, said credit problems would continue for the near future. Its earnings follow the pattern set this week by Citigroup Inc. and JPMorgan Chase & Co., which also reported more loan losses during the third quarter. The company's stock is down in premarket trading. (Copyright 2009 by The Associated Press. All Rights Reserved.)