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UPDATE 2-Bank of America sees disappointing fourth quarter
December 12, 2007 / 2:56 PM / in 10 years

UPDATE 2-Bank of America sees disappointing fourth quarter

(Adds CEO comments on Fed rate cut, China Construction Bank)

NEW YORK, Dec 12 (Reuters) - Bank of America Corp (BAC.N) expects its fourth-quarter results to be disappointing due to write-downs and lower trading revenue, Chief Executive Ken Lewis said on Wednesday.

The company is likely to be profitable in the quarter but expects to set aside $3.3 billion for losses and write-downs, Lewis said at a conference.

Bank of America shares were down 78 cents, or 1.75 percent, to $43.87 in early trading on the New York Stock Exchange.

“While we do not make a practice of forecasting quarterly earnings, I think you certainly can assume results will again be quite disappointing,” Lewis said.

He said he personally would have preferred a half-point rate cut by the Federal Reserve on Tuesday “because the capital markets are still so fragile.” The Fed cut the fed funds rate by a quarter point.

Lewis said in response to analysts’ questions that the bank hopes to monetize some of its 9 percent stake in China Construction Bank (0939.HK), starting in 2008, and was “talking to the Chinese to see what level they would be comfortable with us holding.” (Reporting by Christian Plumb and Ed Leefeldt, editing by Gerald E. McCormick and John Wallace)

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