Bank of America Expects $3 billion in CDO-related Write Downs

Bank of America announced today that it would realize at least $3 billion in write downs related to losses in CDO holdings. Banks of America cited "severe dislocations" in the CDO market triggered by downgrades at the ratings agencies as the primary culprit of the losses. Losses could become much greater as well. Bank of America has exposure to $15 billion in CDOs and $12 billion of that exposures is backed by risky (and failing) subprime mortgage debt. Not good news for near-future profit for the banking leader. From Market Watch: Since the end of the third quarter, "the credit ratings of certain CDOs were downgraded which, among other things, helped to trigger severe dislocations in the CDO markets," said Chief Financial Officer Joe Price. "As a result, many market participants hav