The subprime mortgage fallout and ensuing credit crunch cut into Bank of America's earnings, which fell 29% in 2007 from the year before.
The nation's second-biggest bank - behind Citigroup - also pumped $2 billion into ailing Countrywide Financial (which it said in 2008 it would buy for $4 billion) and bought LaSalle Bank for $21 billion.
NEXT: Microsoft