Saturday, October 25, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Bank of America takes $4 billion litigation hit

By
From page A5 | July 17, 2014 |

NEW YORK — Bank of America said Wednesday that its second-quarter earnings were hit by higher litigation expenses.

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, a decline of 43 percent.

Revenue fell 4 percent to $21.9 billion from $22.9 billion.

Per share, the bank’s earnings worked out to 19 cents, compared with 32 cents a year ago.

The bank’s litigation costs of $4 billion crimped earnings by 22 cents a share.

Bank of America also said that it had reached a $650 million settlement Tuesday with American International Group Inc. to resolve all outstanding residential mortgage-backed securities litigation between the two companies.

The bank said that “substantially all” of the litigation expenses incurred in the second quarter of the year were related to existing mortgage issues that have been previously disclosed.

Like its competitors, Bank of America is still dealing with the fallout from the financial crisis that began in 2007 and the subsequent collapse of the housing market. For example, the bank said in March that it will spend $9.33 billion to resolve a dispute over mortgage securities with the Federal Housing Finance Agency, the regulator that oversees Fannie Mae and Freddie Mac.

However, unlike JPMorgan and Citigroup, Bank of America has yet to settle a federal investigation into its handling of risky subprime mortgages. Citigroup said on Monday that it had agreed to a $7 billion settlement with the Department of Justice, while JPMorgan reached a $13 billion settlement in November.

“We feel like we’ve gotten a large chunk of this behind us … Clearly, the DOJ is the most significant matter that’s out there remaining,” Chief Financial Officer Bruce Thompson said on a call with reporters.

Bank of America’s lawyers met with Justice Department officials Tuesday, but the two parties were unable to reach an agreement, according to a person familiar with the meeting. The Wall Street Journal reported that Bank of America had offered to pay $13 billion in both cash and consumer relief in the meeting, while the department asked for “billions more.” Jerome Dubrowski, a spokesman for Bank of America, said he couldn’t comment on the discussions.

In April, Bank of America was forced to shelve plans to increase its dividend and stock buyback program. The bank said the move came after it realized that it had incorrectly valued securities that it had obtained through its acquisition of Merrill Lynch in 2009. As a consequence, the lender said it needed to hold a higher level of capital.

Bank of America had intended to buy $4 billion of its own stock and raise its dividend from a penny per share to 5 cents per share. The plan had been approved by the Federal Reserve. The bank said May 27 that it had resubmitted its capital plan to the Federal Reserve.

Thompson told reporters on Wednesday that he couldn’t comment on “supervisory matters.”

Bank of America’s stock fell 29 cents, or 1.8 percent, to $15.53.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

 
 
Fall Harvest Festival brings children back to school

By Susan Hiland | From Page: A3 | Gallery

 
Optimist Club brings youth together for Halloween golf

By Amy Maginnis-Honey | From Page: A3

 
Cut-a-thon to help fight cancer, abuse

By Susan Hiland | From Page: A3

 
School board candidates forum set next week

By Susan Winlow | From Page: A4

 
Staying active may prolong your life

By Scott Anderson | From Page: B8

 
Suisun City police log: Oct. 23, 2014

By Susan Hiland | From Page: A9

.

US / World

Suspect arrested in death of 2 California deputies

By The Associated Press | From Page: A1, 4 Comments

 
KC-10 from Travis lands in Houston, smoke in cockpit

By The Associated Press | From Page: A3

Reagan astrologer, Joan Quigley, dies at 87

By The Associated Press | From Page: A4, 2 Comments

 
Jury says castrated sex offender should be freed

By The Associated Press | From Page: A4

Remains belong to missing Virginia student

By The Associated Press | From Page: A5

 
Dallas nurse receives thanks, hug from Obama

By The Associated Press | From Page: A5, 14 Comments

School gunman was Homecoming prince, students say

By The Associated Press | From Page: A5, 2 Comments

 
Lava creeps toward road on Hawaii’s Big Island

By The Associated Press | From Page: A5

NY, NJ order Ebola quarantine for doctors, others

By The Associated Press | From Page: A9

 
Gunman in Canada attack complained about mosque

By The Associated Press | From Page: A10

Egypt declares emergency in northern Sinai

By The Associated Press | From Page: A10

 
Militant group said to be using chlorine bombs

By The Associated Press | From Page: A10, 1 Comment

Putin accuses US of undermining global stability

By The Associated Press | From Page: A10

 
.

Opinion

SEIU shouldn’t own Board of Supervisors

By Letter to the Editor | From Page: A8, 7 Comments

 
Vote, and make a difference

By Letter to the Editor | From Page: A8, 2 Comments

Yes on Measure A

By Letter to the Editor | From Page: A8, 2 Comments

 
Spering best choice for county supervisor

By Daily Republic | From Page: A8, 7 Comments

Return Garamendi to Congress

By Daily Republic | From Page: A8, 25 Comments

 
Editorial Cartoons: Oct. 25, 2014

By Daily Republic Syndicated Content | From Page: A8

.

Living

Today in History: Oct. 25, 2014

By The Associated Press | From Page: A2

 
Community Calendar: Oct. 25, 2014

By Susan Hiland | From Page: A2

Horoscopes: Oct. 25, 2014

By Holiday Mathis | From Page: A7

 
My mother-in-law wants me to convert to Catholicism, but I don’t want to

By Kathy Mitchell and Marcy Sugar | From Page: A7

Hello Kitty turning 40, and the birthday bash will be ‘supercute’

By Mcclatchy-Tribune News Service | From Page: B8

 
.

Entertainment

TVGrid

By Daily Republic Syndicated Content | From Page: B9

 
TLC cancels its ‘Honey Boo Boo’ series

By The Associated Press | From Page: B9

P.D. James’ riff on Jane Austen comes to TV

By The Associated Press | From Page: B9

 
.

Sports

Hamilton helps Vanden sink Vallejo, 35-0

By Nick DeCicco | From Page: B1

 
Vintage rolls past Armijo, 55-8

By Mike Corpos | From Page: B1

Mustangs fall flat in rout by Wildcats

By Marcus Lomtong | From Page: B1, 3 Comments

 
Royals beat Giants 3-2 for 2-1 World Series lead

By The Associated Press | From Page: B1 | Gallery

Vargas to take on Vogelsong in Game 4 of Series

By The Associated Press | From Page: B1 | Gallery

 
Falcons hang with Wolves in 34-8 setback

By Paul Farmer | From Page: B1, 1 Comment | Gallery

Henley’s putting gets him lead at Sea Island

By The Associated Press | From Page: B2

 
Judge halts New Jersey’s sports betting plan

By The Associated Press | From Page: B2

Joe Maddon exercises opt-out, won’t return to Rays

By The Associated Press | From Page: B2

 
Jamie McMurray bests Chase drivers to win pole

By The Associated Press | From Page: B2 | Gallery

Attorney: NFL, Ravens not helping union in Rice probe

By The Associated Press | From Page: B2

 
SCC women’s soccer team falls to Mendocino 3-1

By Daily Republic staff | From Page: B2

Unfazed, 49ers coach Jim Harbaugh doing it his way

By The Associated Press | From Page: B2

 
Lloyd leads US women past Mexico 3-0

By The Associated Press | From Page: B2

Raiders’ Woodley, Young expected to be placed on IR

By The Associated Press | From Page: B2

 
This date in sports history for Saturday, Oct. 25, 2014

By The Associated Press | From Page: B3

 
.

Business

US official: Auto safety agency under review

By The Associated Press | From Page: B4

 
Ford profit falls in third quarter on truck costs

By The Associated Press | From Page: B4

Procter & Gamble taking out its batteries

By The Associated Press | From Page: B4

 
UPS expects double-digit surge in Dec shipments

By The Associated Press | From Page: B4

US new-home sales close to flat in September

By The Associated Press | From Page: B4

 
.

Obituaries

Mark Dean Lindsay

By Nancy Green | From Page: A4, 1 Comment

 
.

Comics

Peanuts

By Daily Republic Syndicated Content | From Page: A6

 
Pickles

By Daily Republic Syndicated Content | From Page: A6

Beetle Bailey

By Daily Republic Syndicated Content | From Page: A6

 
B.C.

By Daily Republic Syndicated Content | From Page: A6

Dilbert

By Daily Republic Syndicated Content | From Page: A6

 
Get Fuzzy

By Daily Republic Syndicated Content | From Page: A6

Rose is Rose

By Daily Republic Syndicated Content | From Page: A6

 
Garfield

By Daily Republic Syndicated Content | From Page: A6

Baldo

By Daily Republic Syndicated Content | From Page: A6

 
Baby Blues

By Daily Republic Syndicated Content | From Page: A6

Frank and Ernest

By Daily Republic Syndicated Content | From Page: A6

 
Sally Forth

By Daily Republic Syndicated Content | From Page: A6

Wizard of Id

By Daily Republic Syndicated Content | From Page: A6

 
Blondie

By Daily Republic Syndicated Content | From Page: A6

Zits

By Daily Republic Syndicated Content | From Page: A6

 
For Better or Worse

By Daily Republic Syndicated Content | From Page: A6

Cryptoquote

By Daily Republic Syndicated Content | From Page: A7

 
Crossword

By Daily Republic Syndicated Content | From Page: A7

Bridge

By Daily Republic Syndicated Content | From Page: A7

 
Sudoku

By Daily Republic Syndicated Content | From Page: A7

Word Sleuth

By Daily Republic Syndicated Content | From Page: A7

 
.

Home Seller 10/25/14

Real estate transactions for Oct. 25, 2014

By Daily Republic | From Page: HSR2