As it continues to weather lawsuit after lawsuit, BOA could find its reserves insufficient to pay its mounting legal bills
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.
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.
