Friday October 21st, 2016 7:19AM

Bank of America takes $4 billion litigation hit

By The Associated Press
NEW YORK (AP) -- Bank of America said Wednesday that its second quarter earnings were hit by higher litigation expenses.<br /> <br /> The Charlotte, N.C.-based bank earned $2 billion in the second quarter after payments to preferred shareholders, compared with $3.6 billion in the same period a year earlier.<br /> <br /> Per share, that worked out to 19 cents, compared with 32 cents a year ago.<br /> <br /> The bank's litigation costs of $4 billion crimped earnings by 22 cents a share.<br /> <br /> The bank also said that it had reached a settlement Tuesday with American International Group Inc. to resolve all outstanding residential mortgage-backed securities litigation between the two companies.<br /> <br /> Revenue fell 4 percent to $21.9 billion from $22.9 billion.<br /> <br /> Bank of America's stock was little changed at $15.91 pre-market trading.
© Copyright 2016
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.