Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Search of Air Algerie crash site continues

Read more

MEDIAWATCH

Sarkozy, Hollande and the scooter wars

Read more

MEDIAWATCH

Confusion online over Air Algérie flight

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014

Read more

REPORTERS

Halal tourism on the rise

Read more

ENCORE!

Tunisia's Carthage International Festival turns 50

Read more

FRANCE IN FOCUS

WWI Centenary: the battle for Verdun

Read more

THE BUSINESS INTERVIEW

When big companies want to do good

Read more

  • In pictures: Debris and devastation at Air Algérie Flight AH5017 crash scene

    Read more

  • Kerry heads to Paris for new round of Gaza peace talks

    Read more

  • Video: No investigation apparent at site of downed Malaysian plane

    Read more

  • Washington Post correspondent and his wife arrested in Iran

    Read more

  • Paris bans new Gaza protest scheduled for Saturday

    Read more

  • Tour de France fans bring the ambience to the Pyrenees

    Read more

  • French families grieve for Algerian plane crash victims

    Read more

  • Protest against Gaza offensive turns deadly in West Bank

    Read more

  • Halal tourism on the rise

    Read more

  • LA Times wipes France off the map in air crash infographic

    Read more

  • Lithuania’s Navardauskas wins 19th stage of Tour de France

    Read more

  • French lawyer files complaint against Israel at ICC

    Read more

  • Ukraine names acting PM after Yatseniuk's shock resignation

    Read more

  • BNP to pay $80 million for defrauding Dept of Agriculture

    Read more

  • Deadly strike on UN shelter in Gaza Strip

    Read more

  • Pope meets Christian woman sentenced to death in Sudan

    Read more

Bank of America earnings fall on $4 bn in legal bills

AFP

A man withdraws cash from a Bank of America automated teller machine in Hollywood on October 24, 2012A man withdraws cash from a Bank of America automated teller machine in Hollywood on October 24, 2012

A man withdraws cash from a Bank of America automated teller machine in Hollywood on October 24, 2012A man withdraws cash from a Bank of America automated teller machine in Hollywood on October 24, 2012

Bank of America Wednesday reported a 43 percent drop in second-quarter earnings weighed down by heavy litigation costs in the aftermath of the housing bust.

Earnings fell to $2.0 billion in large part due to $4 billion in litigation expenses.

But the bank pointed to lower non-litigation expenses and reported gains in some categories, including investment banking fees.

"The economy continues to strengthen, and our customers and clients are doing more business with us," said chief executive Brian Moynihan.

"Among other positive indicators, consumers are spending more, brokerage assets are up by double digits and our corporate clients are increasingly turning to us to help finance business expansion and merger activity. We are well positioned for further progress."

All of the big US banks have faced extensive legal costs after the financial crisis, as US regulators and private investors seek redress for mortgage-linked securities that sank in value after the housing bust.

Bank of America in the first quarter of 2014 reported a loss of $276 million following a $6 billion legal charge to settle mortgage-related lawsuits.

Bank of America is in talks with the US Justice Department on another big settlement to settle allegations it misled investors.

The bank said the latest legal charge relates "to previously disclosed legacy mortgage-related matters."

The bank announced it would pay a $650 million settlement to insurer AIG on mortgage-backed securities.

Bank of America's earnings translated into per-share profits of 19 cents, compared with analyst forecasts for 29 cents per share. The legal expense shaved 22 cents per share from earnings.

Revenues fell 4.3 percent to $21.96 billion, above the $21.62 billion forecast by analysts.

Shares fell 1.1 percent to $15.64 in pre-market trade.

Date created : 2014-07-16