Bank of America in sore need of capital

Bank of America's first-quarter earnings of 23 cents a share sorely lagged the average estimate of 41 cents. The somewhat ominous twist this time is that the bank seems to be feeling the effects of a slowing consumer market. Home equity loans, credit card loans and loans to small businesses all were pressured. The bank also took nearly $2 billion in writedowns on CDOs and leveraged loans. Unsurprisingly, the bank is aiming to bolster its capital levels. The New York Times reports that Bank of America executives have been speaking with China Construction Bank officials to sell a part of its 9 percent stake in the bank (it bought its stake for $2.5 billion in 2005). Bank of America is said to be in need of up to $10 billion in additional capital. This likely is not the only effort underway.  

For more:
- here's an article on earnings from CNNMoney.com
- here's the New York Times article on capital raising efforts

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