BofA Reports $9.1B Loss in Q2

Largely because of an $8.5B legal claims settlement
By Newser Editors and Wire Services
Posted Jul 19, 2011 9:50 AM CDT
Bank of America Reports Huge Q2 Loss: $8.5B Legal Settlement Made For $9.1B Overall Loss
In this Jan. 20, 2011 file photo, Bank of America's corporate headquarters is shown in Charlotte, N.C.   (Chuck Burton)

Things keep getting worse for Bank of America. The nation's largest bank reported a loss of $9.1 billion during the second quarter, partly due to an $8.5 billion settlement with investors. That agreement, reached in June, settled claims that the bank had sold the investors poor-quality mortgage bonds. The Charlotte-based bank has been hamstrung by litigation and demands from investors who want Bank of America to buy back the bonds that it sold years ago.

The reported loss available to common shareholders was 90 cents per share, wider than the 85 cents a share loss expected by analysts surveyed by FactSet. But excluding charges related to investor settlements, Bank of America earned 33 cents per share—just slightly higher than the 27 cents per share they earned in the same quarter last year. (More Bank of America stories.)

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