Tuesday, July 19, 2011

Bank of America reports $8.8 billion loss in 2Q





There is no joy in the top floor of 1251 Avenue of the Americas today, where the P&L associated with a once mega profitable BAC position has dwindled to nothing. Check out BofA stocks today from pic above.


Bank of America (BAC: 9.525 -2.01%) reported an $8.8 billion loss in the second quarter, or 90 cents per share, driven by the latest settlement with mortgage-backed securities investors.

BofA settled representation and warranty claims from a group of RMBS investors led by Bank of New York Mellon (BK: 24.74 +0.41%) in June for $8.5 billion. BofA assumed responsibility for the securities from Countrywide Financial Corp. when it bought the lender in 2008.

The second quarter loss follows a $3.1 billion gain one year ago.

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