Bank Of America Expecting Bad Fourth Quarter

Bank of America Corp. says continued "market dislocations" will adversely impact its fourth quarter results.

The bank says in a regulatory filing that the market changes
include those related to the value of securities it owns that are
backed by loans.

Bank of America says in the filing with the Security and
Exchange Commission that it has some exposure to collateralized
debt obligations. Those obligations are complex financial
instruments that combine slices of different kinds of risk and
often are backed by subprime loans.

Bank of America does not directly offer subprime loans. But the
value of the CDOs has plummeted as an increasing number of subprime
borrowers have defaulted on their home loans.

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