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Capital constraints

16 April 2010 By Antony Currie

The big U.S. lender earned $3.2 bln in Q1 and released some reserves. BofA’s return on equity, however, was a paltry 5.7 pct. Loan losses explain part of it. But with so much more capital and big liquidity cushions required, many banks will struggle to deliver bumper returns.

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