On the heals of Citi’s announcement of $1Billion + losses this quarter…Bank Of America announces $2.24 Billion in losses.

I think we all know the truth…these banks are insolvent. CEO’s just can’t admit it when they have failed.  It would be a punishing blow to the US, however, the truth is becoming more apparent to all that have some sense of economic understanding. Banks are failing due to thier greed.

The banks are already punishing the folks that do payback loan by raising interest rates and cutting off thier lines of credit. These “good” clients are going elsewhere to get there credit fix.

I’m gonna throw this out and say that Citi, B of A and Wells will all fail or be taken over in the next year…

The writing is on the wall.

Below is more ammunition:

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BofA Loses $1bn as Net Loss on Home Loans Widens

By AUSTIN KILGORE
October 16, 2009 8:59 AM CST

Bank of America (BAC: 17.35 -4.14%) lost $1bn or $0.26 per share during Q309, compared to a profit of $1.2bn during Q308.

But company year-to-date income through Q309 was $6.5bn, compared with $5.8bn during the same period of 2008. BofA paid $1.2bn in preferred dividends for the quarter, including $893m in dividends to the US government.

The company’s net loss on the home loans and insurance segment widened to $1.6bn from a $54m net loss in the year-ago quarter.

BofA funded $95.7bn in first mortgages, selling purchase or refinance loans to nearly 450,000 borrowers, including $23.3bn in mortgages to 154,000 low- and moderate-income borrowers during the quarter. About 39% of all the first mortgages were for purchases.

Year-to-date at the end of Q309, BofA modified the mortgages of approximately 215,000 customers, and an additional 98,000 BofA mortgage customers are in the trial stage of a Making Home Affordable Modification Program (HAMP) workout.

BofA increased its provision for credit losses to $2.9bn “driven by continued economic weakness and lower home prices,” and due to further deterioration in the purchased impaired portfolio BofA holds from its acquisition of Countrywide. The company added $2.1bn to the reserve for credit losses — less than Q209, BofA said, as delinquencies improve in the unsecured consumer portfolios.

All told, BofA reported $9.6bn in net charge-offs in the quarter, $923m higher than in Q209.

“The company’s core performance was impacted by a number of non-core items,” said president and CEO Kenneth Lewis. “The market’s improved view of Bank of America’s credit cost the company due to non-cash marks on liabilities.”

Earnings were also affected by $2.6bn in pretax mark-to-market and credit valuation adjustments on certain liabilities including Merrill Lynch structured notes. BofA reported a $402m pretax charge to pay the US government to terminate its asset-guarantee term sheet.