Major bank sets aside $145M for legal expenses

by MPA07 Jan 2015

SunTrust Banks announced it will take a $145 million charge against its fourth-quarter earnings for legal expenses related to a federal inquiry into its handling of problem mortgages and foreclosures.

In a U.S. Securities and Exchange Commission (SEC) filing, the Atlanta-based bank said the cost will reduce its fourth-quarter earnings by $0.17 per share. SunTrust said the expense is related to resolving one issue in its “previously disclosed legacy mortgage matters.”

SunTrust is among several banks, including Bank of America, JP Morgan Chase and Citigroup, working to move past regulatory probes tied to shoddy mortgage practices. In June, SunTrust agreed to pay nearly a billion dollars in fines and consumer relief to settle allegations of abusive mortgage practices.

The bank is slated to announce its fourth quarter results Jan. 16.



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