Topics

Goldman Sachs Group, Inc.
Mortgage-related legal costs sock BofA with $276-million loss
Mortgage-related legal costs sock BofA with $276-million loss

Socked by mortgage-related legal expenses, Bank of America Corp. lost $276 million during the first quarter, sending its stock down sharply. The quarterly loss, its first in 2½ years, came despite lower loan losses and better than expected results in fixed-income trading, a slowing business that hurt rival JPMorgan Chase & Co. during the quarter. The results included $6 billion in litigation expense, much of it related to toxic bonds backed by housing-boom mortgages from Countrywide Financial Corp., the aggressive Calabasas lender that nearly collapsed before being acquired by Bank of America in 2008. "The cost of resolving more of our mortgage issues hurt our earnings this...

Loading