Bank of America announced that its fourth-quarter net income tumbled amid problems in the capital markets and a slowdown in the U.S. economy. Among the main reasons for the earnings decline, BofA said its provision expense rose $1.74 billion, “largely due to a $1.33 billion addition to the reserve for credit losses.” Additionally, net charge-offs (loans the bank thinks it will be unable to collect) increased to 0.91% from 0.82% a year earlier.
I have 18,675 World Points on my TexasExes Bank of America rewards card, which I got for being a TexasEx via a telemarketer to alumni. The card had a low interest rate at first, but it’s popped into the stratosphere. (Don’t ask.) I really want to get rid of that interest rate, and will be calling Money Management International soon for help in getting it slashed. That will mean closing the account, so I might as well redeem the points first.