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Bank of America Reports loss of $8.8 Billion

by Chicago Agent

In the second quarter, Bank of America posted a $8.8 billion loss, following the $8.5 billion settlement with investors regarding troubled mortgage-backed securities.

REUTERS/Lucas Jackson

“Bank of America Corp. posted its third loss in four quarters, meeting its pre-reported figures, as mortgage-related problems continued to overshadow any improvements in other operations, said the Wall Street Journal.

 

“Results at the nation’s biggest bank by both assets and deposits were bolstered by strong Wall Street-related results and the improving quality of its outstanding loans. But loans at the bank failed to grow from the prior year,” Wall Street Journal continued.

A year ago, Bank of America had reported a $3.1 billion gain.

Housing Wire added that the bank saw an $885 million reduction in mortgage servicing rights (due to higher servicing costs), $716 million worth of foreclosure delays, $1.9 billion in litigation expenses and a $604 million reduction in income.

The sale of Balboa Insurance Co. helped remediate some of the losses, providing a $752 million gain.

“We intend to continue our efforts to put the mortgage uncertainty behind us, build capital through the strength of the franchise, and deliver the returns for shareholders that we owe them,” said Bank of America CEO, Brian Moynihan to Housing Wire.

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