Posted: Wednesday, July 16th 2014 at 8:14am
Bank of America takes $4 billion litigation hit
By The Associated Press
NEW YORK (AP) -- Bank of America said Wednesday that its second quarter earnings were hit by higher litigation expenses.
The Charlotte, N.C.-based bank earned $2 billion in the second quarter after payments to preferred shareholders, compared with $3.6 billion in the same period a year earlier.
Per share, that worked out to 19 cents, compared with 32 cents a year ago.
The bank's litigation costs of $4 billion crimped earnings by 22 cents a share.
The bank also said that it had reached a settlement Tuesday with American International Group Inc. to resolve all outstanding residential mortgage-backed securities litigation between the two companies.
Revenue fell 4 percent to $21.9 billion from $22.9 billion.
Bank of America's stock was little changed at $15.91 pre-market trading.
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