why stock prices of bank of america decreased

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1. amomipais82
   

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   The four biggest U.S. banks by assets may have to take writedowns on $55 billion of mortgage- collection contracts after marking them up by $11 billion in the second quarter, casting a shadow over earnings. Bank of America Corp. (NYSE: BAC), JPMorgan Chase & Co. (NYSE: JPM), Citigroup Inc. (NYSE: C) and Wells Fargo & Co. (NYSE: WFC) wrote up the value of the contracts, known as mortgage-servicing rights or MSRs, by 26 percent in the quarter as mortgage rates climbed by about 0.35 percentage point. Net gains on the contracts added more than $1 billion to Wells Fargo’s record earnings in the quarter and $1 billion to JPMorgan’s first-quarter profit. Mortgage rates fell about 0.26 percentage point in the third quarter, according to Freddie Mac, and servicing costs are rising, meaning the four banks, which handle collections on more than $5.9 trillion of U.S. mortgages, may face writedowns. -Bloomberg
   
   Rival banks are eagerly awaiting this week’s earnings announcement from Goldman Sachs (NYSE: GS) not only for the third-quarter results but for how the firm deals with up to $20 billion in bonuses just a year after it received federal bailout money during the height of the financial crisis." -BloggingStocks
   
   Singapore’s economy surged for a second straight quarter, and the government boosted its 2009 growth forecast, as manufacturing cemented the city-state’s emergence from recession. Gross domestic product grew an annualized, seasonally adjusted 14.9 percent in the third quarter, following a jump of 22 percent the previous quarter, the Trade and Industry Ministry said Monday. –Associated Press
   
   Gold futures rose Monday, trading above $1,050 an ounce as a falling U.S. dollar and rising crude prices boosted the metal’s appeal as a hedge against a weaker currency and potential inflation. Crude topped $73 a barrel and rose to the highest level in seven weeks. Other commodities were also mostly higher on Monday. -Marketwatch
   
   Royal Philips Electronics NV, Europe’s biggest consumer-electronics maker, unexpectedly posted a profit in the third quarter as operating earnings at the consumer unit more than doubled. Third-quarter net income jumped to 174 million euros ($256 million), or 19 cents a share, from 57 million euros, or 6 cents, in the year-earlier period, the Amsterdam-based company said today. Analysts had predicted a loss of 44.7 million euros, the average of 13 estimates compiled by Bloomberg. -Bloomberg
   
   Citigroup (NYSE: C) appointed James Bardrick and Manuel Falco as co-heads of banking for the Europe, the Middle East and Africa (EMEA) region, the bank said in a memo on Monday, to replace veteran dealmaker Tom King. Bardrick, who has worked for the bank for 22 years, most recently was co-head of global industrials banking. Falco, with an 11-year career at the bank, was head of Iberia banking, Citi said in the note to employees. -Reuters

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