Bank of America Corp reported an unexpected first-quarter loss on Wednesday after it took a $6 billion charge to cover litigation expenses, a figure that far exceeded the legal settlements the No. 2 U.S. bank has announced recently. Revenue improved in many of the banks major businesses, but the results were overshadowed by its bigger-than-expected legal costs. The bank had previously said that a settlement would cut into its earnings by $3.7 billion before taxes. The extra litigation expenses came from setting aside money to cover future legal settlements tied to previously disclosed mortgage-related matters, Chief Financial Officer Bruce Thompson told reporters. Still, the banks setting aside more money does not mean a settlement is imminent, Thompson told analysts on a separate conference call. The banks shares fell 3.4 percent to $15.84 in morning trading on the New York Stock Exchange.
Posted on: Wed, 16 Apr 2014 16:37:32 +0000
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