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Bank of America posts loss, hurt by legal expenses

Published April 16, 2014 8:26 am

This is an archived article that was published on sltrib.com in 2014, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Charlotte, N.C. • Bank of America said Wednesday that it swung to a loss in the first quarter, hurt by $6 billion in legal expenses.

The Charlotte, N.C., bank reported a loss applicable to common shareholders of $514 million. That's compares with earnings of $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 $22.66 billion after stripping out an accounting change. That was down 3.8 percent from last year.

The $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 $16.24 in premarket trading about an hour and a half before the market open.