BofA credit losses soar, profit falls – Good for them!

Jon Stewart asked a good question a few months ago.  These banks are “suffering” because of people not paying their bills, so the government gives the banks bailout money… but yet the debt remains.  So why doesn’t the government just pay off the consumer debt, then the consumers can start all over and the banks are happy.  They were spending this money anyways…

Bank of America set aside $13.38 billion for bad loans for a second straight quarter, and net charge-offs totaled $8.7 billion, up 25 percent from the prior three-month period. Total reserves increased $4.63 billion to $35.78 billion, and nonperforming assets surged 21 percent to $30.98 billion.

Credit card operations lost $1.62 billion, the second straight quarterly loss. Lewis said new credit card rules in 2010 could reduce annual card revenue by $500 million to $700 million, similar to what JPMorgan expects.

via Bank of America credit losses soar, profit falls | Stocks | Reuters .