Bank of America posts third quarter loss

Bank of America posted its second quarterly loss in less than a year as it suffered from consumer credit losses.

The largest US bank reported a net loss of $1 billion for the third quarter, compared with net income of $1.18 billion in the same period last year at the height of the financial crisis.

The bank received two taxpayer bailouts totalling $45 billion after acquiring broker Merrill Lynch and mortgage lender Countrywide at the height of the financial crisis last year.

In an ironic twist Merrill Lynch made a positive contribution, producing $2.2 billion in profits.