The bank reported profit of $340 million for the quarter, or breakeven on a per-share basis, on revenue of $22.5 billion. Analysts had expected the bank to report a net loss of $94 million, or 7 cents a share, on revenue of $21.9 billion.
While a $1.6 billion litigation expense weighed on the results this quarter, the bank attributed its higher-than-expected results to income from mortgage lending, trading and investment banking.
Last year, Bank of America launched a cost-cutting program that included the elimination of 30,000 jobs. The program's goal is to save the bank $8 billion in annual expenses.
A123 Systems (AONE) is trending after the electric car-battery manufacturer filed for Chapter 11 bankruptcy protection on Tuesday. The company failed to make a debt payment earlier this week, after losing $83 million in the second quarter. China-based Wanxiang Group had agreed to invest up to $465 million in A123 in exchange for 80% of the company. A123, reportedly under pressure from federal lawmakers about U.S. technology leaving the country to go to foreign competitors, backed out of the deal on Tuesday. The company is selling $125 million of its auto assets to Johnson Controls (JCI), which will provide financing to the company in bankruptcy. It will receive all of A123's automotive assets and will take over its factories in Michigan and China. A123 Systems received $249 million in federal grants as part of the government's stimulus bill in August 2009. President Obama's administration has backed A123 and other alternative energy companies in its support of electric cars. A123 didn't turn a profit in its 11-year history.
Bank of New York Mellon (BK) is another popular search. The bank reported third-quarter results that beat expectations. The bank reported third-quarter earnings that climbed 11%. It also reported net income of $720 million, or 61 cents a share, beating expectations of a profit of 54 cents a share. Total revenue for the third quarter was $3.68 billion, beating estimates of $3.6 billion.
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