B of A sees bumps

Losses on home-equity loans will be even worse than predicted three weeks earlier, according to Liam McGee, president of the consumer and small business group. More customers are using credit cards to pay for necessities, and they're also cutting back on shopping, travel and entertainment. McGee, speaking at an investor conference in NY, expects the economy will shrink during the second quarter. But he said the purchase of Countrywide Financial is still "on track" to be completed in the third quarter, though B of A expects "bumps in the road." There remains a lot of speculation that the bank will want to renegotiate terms of the deal. (Bloomberg)