Bank of America Profits are Affected by Legal Costs

Bank of America has reported profits have been hit by legal costs.

For the last three months to the end of September net income came in down at $340m. It used to be $6.2bn in the same period last year. The bank took a $1.6bn charge for litigation expenses.

The bank has already paid $2.4bn to settle a lawsuit that had been brought by shareholders who said they had been misled about the acquisition of Merrill Lynch by Bank of America.  The acquisition occurred during the financial crisis.

Shareholders argued that Bank of America made misleading statements concerning the financial health of the two banks. However, Bank of America claims it did nothing wrong.

Bank of America warned that it would be hit by a pre-tax loss of $1.9bn and an additional $800m in charges due to changes in the UK corporate tax rate.

The information was taken from the BBC News website. If you like to get more info, please, go to: http://www.bbc.co.uk/news/business-19979438


Our motto is "When Lawyers Compete You Win!" If you are a consumer in need of legal services, you can post your case anonymously and Free of Charge. If you are an attorney seeking new clients, you may register on the site for free. You will only pay when a client requests that you contact them to discuss their case.

Leave a Reply

Your email address will not be published. Required fields are marked *


5 − = zero

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>