NEW YORK (CNN/Money) - FleetBoston Financial Corp. took a $1 billion charge that plunged it into the red as it badly missed Wall Street forecasts for its operating income in the second quarter.

Excluding the charge the nation's No. 7 U.S.-based bank holding company in terms of assets, earned $635 million, or 60 cents a share. That not only missed the 71-cent consensus earnings-per-share forecast of analysts surveyed by tracker First Call, it also missed the bottom of the estimate range, which ran from 65 to 73 cents a share. The company earned $521 million, or 47 cents a share, from continuing operations in the year-earlier period.

The company posted a net loss including the charge of $386 million, or 37 cents a share, in the most recent quarter. The company said $449 million of that after-tax charge related to recognizing continued deterioration in the Argentine economy, while $387 million came from provisions for credit losses outside of Argentina. Another $278 million came from its decision announced late Friday to close the Robertson Stephens investment banking business and exit its Asian and its student loan processing businesses. Partially offsetting the loss was a one-time $93 million after-tax securities gain.

Shares of FleetBoston (FBF: Research, Estimates) lost $1.03, or 3.5 percent, to $28.01 in pre-market trading Monday, following a drop of 26 cents, or nearly 1 percent, in regular-hours trading Friday.

In other financial services news, Bank of America Corp., the nation's No. 3 bank holding company in terms of assets, reported improved second-quarter results that edged past forecasts for the period, while home financing company Fannie Mae beat also estimates, but warned of slower growth in 2003. Meanwhile Chicago-based Northern Trust missed forecasts for the period.

Charlotte, N.C.-based Bank of America, earned $2.2 billion, or $1.40 a share, in the period, up 13 percent from the $2.0 billion, or $1.24 a share, earned in the comparable quarter a year earlier. That beat the consensus forecast of $1.39 a share from analysts surveyed by earnings tracker First Call.

Total revenue slipped 1.3 percent to $8.4 billion, despite a 6 percent gain in consumer and commercial banking revenue. Other divisions saw revenue decline, and equity investment posted $78 million in negative revenue compared to $78 million in positive revenue a year earlier.

Shares of Bank of America (BAC: Research, Estimates) lost 54 cents to close Friday trading at $68.61.

Fannie Mae said its earnings rose as interest rates remained low, prompting the housing market to thrive and boosting mortgage volume. But the company said it expected its growth in 2003 would be less than in 2001 or 2002.

The company, which purchases loans from banks and other mortgage lenders and repackages them into securities, said its second-quarter earnings were $1.46 billion, or $1.44 per share, compared with $1.4 billion, or $1.36 per share, a year earlier.

The company said earnings excluding changes in the market value of its investments, totaled $1.57 billion, or $1.55 per share, compared with $1.31 billion, or $1.27 per share, a year earlier. That beat the First Call forecast of $1.52 a share.

The company, which has been criticized for using its Congressionally-chartered status to avoid disclosing certain information to investors, on Friday said it would voluntarily file to the Securities and Exchange Commission the same information as other companies.

The Federal Reserve has kept rates at 40-year lows to boost the weak economy, spurring the mortgage market. But it is widely expected to raise rates by the end of the year, which could put pressure on Fannie Mae's earnings.

Shares of Fannie Mae (FNM: Research, Estimates) closed down $1.26, or 1.8 percent, at $70.63 in Friday trading.

Northern Trust's net income for the quarter slipped to $126.8 million, or 56 cents a share, from $131.3 million, or 57 cents a share, in the year-earlier period. First Call's forecast called for earnings per share to remain at 57 cents. Shares of Northern Trust (NTRS: Research, Estimates) lost 46 cents, or 1 percent, to $39.59 in trading Friday.  

Reuters contributed to this story.