BOA legal bills could exceed reserves by $5bn

by Ryan Smith02 May 2014
As it weathers lawsuit after lawsuit over shoddy mortgages, Bank of America’s legal bills could exceed its reserves by as much as $5 billion.

The bank gave the estimate in a quarterly filing with regulators, according to a Bloomberg report. That’s down considerably from the $6.1 billion estimate the bank gave in December. However, the lender also recently reported a first-quarter loss after adding $2.4 billion to its legal reserves, Bloomberg reported.

Bank of America has been plagued by litigation over its sale of faulty home loans – especially those sold by its Countrywide unit. Last month, the bank agreed to pony up $9.33 billion to the Federal Housing Finance Agency to settle various claims over the sale of mortgage-backed securities.

Federal prosecutors are still seeking more than $13 billion from the bank to resolve other mortgage-bond claims, Bloomberg reported.
 
 

COMMENTS

  • by Cheryl M | 5/2/2014 11:24:06 AM

    What comes around goes around.

  • by Stacey Johnson | 5/2/2014 12:52:08 PM

    Don't think the bank should be taking the blunt for all this. BOA did a favor by taking the bankrupt Countrywide. What would have happened if the government, or the American people had to take it... let's be realistic. When the mortgages were flying out the door there was no problem then. Our economy crashes when all the jobs go over seas... this bank employees 200,000 Americans. Good jobs to boot. Time Fannie and Freddie to take some liability. Back off the banks who employee millions here in the US.

  • by mary cottrill | 5/2/2014 1:56:32 PM

    Amen Stacey Johnson! quit making out the big banks to be satan

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