At Bank of America, an $8.8 Billion Loss |
| New York Times - Jul 19, 2011 |
Bank of America reported a loss of $8.8 billion in the second quarter as it doled out huge payments to settle legal claims related to its troubled mortgage division.
The loss, which amounted to 90 cents a share, was steep, but it was fully baked into expectations. Analysts predicted the bank would lose 90 cents a share, compared with a profit of $3.1 billion, or 27 cents a share, in the period a year earlier.
The mortgage problems also ate into revenue, which fell about 55 percent, to $13.2 billion. The drop came as the bank reported a large decline in noninterest income, the result of swelling mortgage provisions.
With the second quarter nearing a close, the bank agreed in June to pay $8.5 billion to a group of more than 20 big investors who bought billions of dollars’ worth of soured mortgage investments. The deal, which is still awaiting a judge’s approval, represents the single biggest settlement tied to the subprime mortgage crisis.
Read Full Article from New York Times
- Posted: 2011-07-19 10:02:54
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