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Bank of America reports $276m loss after $6bn legal hit | |
(35 minutes later) | |
Bank of America has posted a $276m (£165m) loss for January to March. | Bank of America has posted a $276m (£165m) loss for January to March. |
Its results included $6bn in legal expenses to settle allegations that it misled mortgage lenders Fannie Mae and Freddie Mac before the housing crisis in 2008, as well as for other mortgage-related matters. | Its results included $6bn in legal expenses to settle allegations that it misled mortgage lenders Fannie Mae and Freddie Mac before the housing crisis in 2008, as well as for other mortgage-related matters. |
Revenue declined 3% compared with the first quarter of 2013, to $22.7bn. | Revenue declined 3% compared with the first quarter of 2013, to $22.7bn. |
Nevertheless, the bank said it had "solid results" and that costs from its mortgage loans business fell by $1bn. | Nevertheless, the bank said it had "solid results" and that costs from its mortgage loans business fell by $1bn. |
Earnings 'hurt' | |
In March, the firm agreed to pay $9.5bn (£5.7bn) to settle four lawsuits filed in 2011 by US regulatory agency, the Federal Housing Finance Authority (FHFA). | |
The bank agreed to pay $6.3bn in cash and buy back $3.2bn in mortgage securities from Fannie Mae and Freddie Mac. | |
The cash settlement ate into earnings in the first quarter, chief executive Brian Moynihan said. | |
"The cost of resolving more of our mortgage issues hurt our earnings this quarter," he said. | |
The bank's results in the fourth quarter last year were affected by a $1.6bn settlement with bond insurers. |
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