Bank of America saw its profit decline in the second quarter because of unprecedented legal expenses. Earnings declined 43% from a year earlier to $0.19 cents a share. If the litigation costs were stripped out, earnings would have come in at $0.41 a share, better than expectations. Revenue came in at almost $22 billion. That was a little better than estimates, but roughly 4% lower than the same period a year ago. The bank paid $650 million in settlement with AIG on mortgage backed securities it sold. It is also negotiating with the U.S. Justice Department on a possible settlement relating to mortgage bonds that could be in the tens of billions of dollars. TheStreet's Julia Sun reports from New York.