This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bank of America Swings to Loss on Mortgage Settlement

NEW YORK ( TheStreet) --  Bank of America (BAC - Get Report), the second-largest U.S. bank, reported a first-quarter loss as the company dealt with litigation expenses for residual faulty mortgage products from the financial crisis.

For the three months to March, the bank reported a loss of $276 million, or 5 cents a share, after taking a $6 billion hit related to a settlement with the Federal Housing Finance Agency (FHFA). The expense resolved litigation filed against Bank of America regarding residential mortgage-backed securities (RMBS) allegedly misrepresented as complying with regulatory standards.

"The cost of resolving more of our mortgage issues hurt our earnings this quarter," said Chief Executive Officer Brian Moynihan in a statement.

Stripping out the impact of these expenses, North Carolina-based Bank of America recorded adjusted net income of 35 cents a share. 

Must Read: PIMCO Sees Flaw in Obama Fannie Freddie Wind-down Plan

Revenue of $22.8 billion was 3% lower year over year but beat analysts' estimates by $470 million.

The bank's Basel III Common equity ratio, a marker of liquidity risk and capital adequacy, increased to 11.8% from 11.7% at the end of the last quarter. Its tangible book value per share increased to $13.81, 2 cents higher than at year's end.

--Written by Keris Alison Lahiff in New York. 

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.12 0.46%
AAPL $92.73 -0.55%
FB $119.25 1.20%
GOOG $709.97 1.20%
TSLA $214.78 1.50%


Chart of I:DJI
DOW 17,734.44 +73.73 0.42%
S&P 500 2,056.90 +6.27 0.31%
NASDAQ 4,731.89 +14.7960 0.31%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs