Bank of America posts loss, hurt by legal expenses

Bank of America said today that it swung to a loss in the first quarter, hurt by USD 6 billion in legal expenses.
The Charlotte, North Carolina, bank reported a loss applicable to common shareholders of USD 514 million. That's compares with earnings of USD 1.11 billion a year earlier.
The loss amounted to 5 cents a share. A year earlier, the bank earned 10 cents a share.
Revenue totaled USD 22.66 billion after stripping out an accounting change. That was down 3.8 per cent from last year.
The USD 6 billion legal expense stems from a previously announced settlement with the Federal Housing Finance Agency, and additional reserves for other mortgage-related matters.

The bank also said it reached a settlement with the Financial Guaranty Insurance Company, as well as separate settlements with The Bank of New York Mellon, over residential mortgage-backed securities.
Bank of America's stock fell 15 cents to USD 16.24 in premarket trading about an hour and a half before the market open.