Reply #2: Bank of America Sells Stock, Cuts Payout as `Recession' Worsens

[NeoConsSuck]

Bank of America Corp., the lender that is buying Merrill Lynch & Co., is preparing for a weaker economy by slashing its dividend in half and raising at least $10 billion in a sale of common stock.

The dividend was cut to 32 cents a share, the Charlotte, North Carolina-based bank said yesterday. Chief Executive Officer Kenneth Lewis said the U.S. economy slowed in the past 45 days with little prospect for immediate improvement.

``The recession is going to be a little deeper than we thought,'' Lewis said on a conference call. ``It's going to take some more time and some more pain.''

http://www.bloomberg.com/apps/news?pid=20601087&sid=as2BgoJzPq3M&refer=home

WOW! The 'R' word is used for the first time by a major bank!