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Bank of America earnings tumble 43% on mortgage litigation costs
Bank of America earnings tumble 43% on mortgage litigation costs

Bank of America Corp.'s second-quarter earnings plunged 43% as the nation's second-largest bank recorded 4 billion additional reasons to regret its 2008 purchase of high-risk home lender Countrywide Financial Corp. in Calabasas. Bank of America said Wednesday that it earmarked $4 billion more for legal costs, up from $471 million a year ago. It already had recorded about $60 billion in mortgage-related costs, including a payout of $6.3 billion to settle lawsuits filed on behalf of home finance giants Fannie Mae and Freddie Mac. The Charlotte, N.C., bank has held discussions with the Justice Department to settle remaining claims by federal and state government agencies, but...

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