Bank of America posts loss, hurt by legal expenses
CHARLOTTE, N.C. - Bank of America said Wednesday that it swung to a loss in the first quarter, hurt by $6 billion in legal expenses.
The Charlotte, N.C., bank reported a loss applicable to common shareholders of $514 million. That's compares with earnings of $1.11 billion a year earlier.
The loss amounted to 5 cents a share. A year earlier, the bank earned 10 cents a share.
Revenue totalled $22.66 billion after stripping out an accounting change. That was down 3.8 per cent from last year.
The $6 billion legal expense stems from a previously announced settlement with the Federal Housing Finance Agency, and additional reserves for other mortgage-related matters.
The bank also said it reached a settlement with the Financial Guaranty Insurance Company, as well as separate settlements with The Bank of New York Mellon, over residential mortgage-backed securities.
Bank of America's stock fell 15 cents to $16.24 in premarket trading about an hour and a half before the market open.