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FleetBoston posts 4Q loss
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January 29, 2002: 7:56 a.m. ET
Bank takes $538M charge related to Argentina's economic crisis.
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NEW YORK (CNN/Money) - FleetBoston Financial posted a big fourth-quarter loss Tuesday, falling well short of Wall Street expectations for a small profit, as the financial services firm grappled with Argentina's economic crisis and a sluggish U.S. economy.
The nation's No. 8 bank posted a loss of $507 million, or 49 cents a share, compared with a profit of $894 million, or 81 cents a share a year earlier. Analysts on average anticipated a profit of 3 cents a share, according to earnings tracker First Call.
The results include a $538 million after-tax charge related to the company's exposure to Argentina and a previously announced $650 million charge related to a business slowdown amid the U.S. recession.
Fourth quarter revenue tumbled to $2.6 billion from $3.8 billion.
The company, which in addition to the bank also owns brokerage Quick & Reilly and investment bank Robertson Stephens, said two weeks ago it was delaying its earnings report as it tried to get a better reading on how Argentina's economic turmoil would affect its results.
"A weakening global economy and the turmoil in Argentina resulted in further pressure on our loan portfolio and we took action in this area by aggressively addressing our problem loans and boosting loan loss reserves," Chief Executive Chad Gifford said in a statement.
Fleet has about $1.9 billion in consumer loans in Argentina, which is still working out how to cope with widespread unemployment and a prolonged recession that have led to political turmoil.
FleetBoston (FBF: Research, Estimates) stock rose 11 cents to $35.09 Monday. 
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