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The massive wealth and profits generated by the big Wall Street banks is draining away. Nearly half of the profit they earned over the last couple of years on the strength of mortgages, CDOs, etc. are gone. Massive write downs continue and the financial services industry looks like it will go through a period of downsizing.

The bloodletting isn't done yet.

Yesterday, Bank of America announced that it was investing $2 billion to acquire a stake in Countrywide Financial. The investment is another example of how dominant Bank of America is becoming in the country's financial system. It already is the largest retail bank in the country, serving tens of millions of customers and has the largest branch and bank network. The company also purchased MBNA last year to have one of the largest credit card portfolios.