Bank of America Corp. (BAC), the largest U.S. lender, may face a further $27 billion of housing-related losses between now and 2013 amid increasing regulation as the economic recovery slows, analysts at Sanford C. Bernstein said.
The losses would be in addition to the $46 billion theCharlotte, North Carolina-based lender has booked so far, analysts led by John E. McDonald wrote in a note today.
“The process of addressing legacy mortgage issues will be long and arduous,” the analysts said. “Recent declines in home prices and an uptick in employment trends create an upward bias to our loss estimates” for the lender. Bernstein has an“outperform” recommendation on the stock.
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