Bank of America Profit Slides 43% After Mortgage Settlement
Shares of Bank of America are in focus on Wall Street Wednesday after reporting second quarter results which were substantially lower because of unprecedented legal expenses.
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.
