Bank of America hit with $4 billion in litigation costs, earned $2 billion in second quarter
A federal judge has ordered Bank of America Corp. to pay $1.27 billion in damages for defective loans originated by its Countrywide unit, in a ruling July 30, 2014 This logo is on a bank in Philadelphia on Jan. 14, 2014. Credit: AP / Matt Rourke
Bank of America said Wednesday that its second quarter earnings were hit by higher litigation expenses.
The bank, based in North Carolina, 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 premarket trading.
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