Nov. 13 (Bloomberg) -- Bank of America Corp., the nation's second-largest bank, will need to write down $3.3 billion in debt securities that have lost value because of defaults on subprime mortgages, Citi Investment Research analyst Keith Horowitz said.
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The biggest part of the expected writedowns this quarter relate to $15.5 billion in ``liquidity support'' that Charlotte, North Carolina-based Bank of America provided to asset managers on short-term funding for CDOs, Horowitz said. The bank disclosed its holdings of CDOS in a Nov. 9 regulatory filing.
This has never been a simple liquidity crisis. People can't pay their mortgages and home prices are falling. The financial institutions are sitting on shitpiles.