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