Friday, August 1, 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

‘Boyhood’ mature on music, moments

By Nick DeCicco | From Page: B1

 
Mr. Clean: Dennis Regan offers friendly jokes, with a bite

By Amy Maginnis-Honey | From Page: B1

Gemstones shine at Solano County Fair

By Barry Eberling | From Page: A1 | Gallery

 
Trifecta: ‘The Who’s Tommy’ third play in three months

By Amy Maginnis-Honey | From Page: B1 | Gallery

 
 
Japan Summerfest returns this month

By Susan Hiland | From Page: A3

 
Highway 12 to close overnight in Jameson Canyon

By Barry Eberling | From Page: A4

Air district calls Spare the Air alert

By Barry Eberling | From Page: A4, 1 Comment

 
Vallejo police arrest suspect in shooting death

By Barry Eberling | From Page: A4 | Gallery

 
Solano Tea Party Patriots schedule meet

By Susan Hiland | From Page: A4, 1 Comment

Stabbing victim dies in Vacaville

By Barry Eberling | From Page: A5, 1 Comment

 
Fairfield police log: July 30, 2014

By Susan Hiland | From Page: A12

Suisun City police log: July 30, 2014

By Susan Hiland | From Page: A12

 
.

US / World

As US job market strengthens, many don’t feel it

By The Associated Press | From Page: A1

 
Dow plunges as multiple worries vex investors

By The Associated Press | From Page: A1 | Gallery

Wisconsin Supreme Court upholds 2011 union law

By The Associated Press | From Page: A1

 
A look at the impact of Wisconsin’s union law

By The Associated Press | From Page: A1

Union: California prison staff told to fake checks

By The Associated Press | From Page: A1 | Gallery

 
Abbas seeks broad support for war crimes charges

By The Associated Press | From Page: A1

US, UN announce deal on 72-hour Gaza cease-fire

By The Associated Press | From Page: A1 | Gallery

 
Californians to see increase in health plan costs

By The Associated Press | From Page: A5

Appellate court overturns high-speed rail rulings

By The Associated Press | From Page: A5

 
Report: Secrecy enveloped Bay Bridge construction

By The Associated Press | From Page: A5

Yosemite wildfire weakened, evacuations to end

By The Associated Press | From Page: A5

 
Candidate goes homeless to show economic gap

By The Associated Press | From Page: A5 | Gallery

California ex-mayor sentenced in corruption case

By The Associated Press | From Page: A5

 
US warns against traveling to Ebola-hit countries

By The Associated Press | From Page: A6, 1 Comment

See-through mice reveal details of inner anatomy

By The Associated Press | From Page: A7

 
CIA spied on Senate, internal review finds

By The Associated Press | From Page: A7

Demoted worker shoots CEO, kills self in Chicago

By The Associated Press | From Page: A7

 
NASA to test making rocket fuel ingredient on Mars

By The Associated Press | From Page: A7

Investigators reach Ukraine jet wreckage site

By The Associated Press | From Page: A7 | Gallery

 
Congress races to finish VA, highway bills

By The Associated Press | From Page: A7

.

Opinion

Nice guy becomes House majority leader

By Dan Walters | From Page: A11

 
Should union organizing be a civil right?

By Ben Boychuk and Joel Mathis | From Page: A11, 1 Comment

 
Editorial Cartoons: Aug. 1, 2014

By Daily Republic Syndicated Content | From Page: A11

To err is human – but not in print

By Bud Stevenson | From Page: A11, 1 Comment

 
Why do so many Americans support Hamas

By Letter to the Editor | From Page: A11, 5 Comments

.

Living

Today in History for Aug. 1, 2014

By The Associated Press | From Page: A2

 
Community Calendar: Aug. 1, 2014

By Susan Hiland | From Page: A2

My irregular monthly cycles were a symptom of cancer, not menopause

By Kathy Mitchell and Marcy Sugar | From Page: A9

 
Horoscopes for Aug. 1, 2014

By Holiday Mathis | From Page: A9

.

Entertainment

Week in preview Aug. 1-7, 2014

By Amy Maginnis-Honey | From Page: B1

 
‘Godfather of Makeup’ Dick Smith dead at 92

By The Associated Press | From Page: B2

 
Review: Boseman drips with charisma as James Brown

By The Associated Press | From Page: B2

Starz’ ‘Outlander’ brings novels to life vibrantly

By The Associated Press | From Page: B3

 
Dionne Warwick knows her way to San Jose

By The Associated Press | From Page: B3

Entertainment calendar Aug. 1, 2014

By Susan Hiland | From Page: B4

 
‘Sharknado 2′ whipped up storm of viewers, tweets

By The Associated Press | From Page: B5

TVGrid

By Daily Republic Syndicated Content | From Page: B6

 
.

Sports

Chekwa taking reps with Raiders while Hayden sits

By The Associated Press | From Page: B7 | Gallery

 
Safety Bethea finding a groove with new 49ers team

By The Associated Press | From Page: B7 | Gallery

Expos fall short in 10-9 loss to Leghorns

By Paul Farmer | From Page: B7

 
A’s deal Tommy Milone to Twins for Sam Fuld

By The Associated Press | From Page: B7

A’s get Lester, Gomes from Red Sox for Cespedes

By The Associated Press | From Page: B7 | Gallery

 
Commonwealth Games athlete convicted for assault on rival

By The Associated Press | From Page: B8

Lynch ends holdout, arrives at Seahawks camp

By The Associated Press | From Page: B8

 
Nick Watney leads PGA Barracuda Championship

By The Associated Press | From Page: B8

Rich get richer: Rays’ Price traded to Tigers

By The Associated Press | From Page: B8 | Gallery

 
Dumdumaya takes third in World Junior/Junior Olympic tourney

By Daily Republic staff | From Page: B8

AP Source: Trump advances in Bills sale process

By The Associated Press | From Page: B8

 
Mudcats get 15-7 win in Auburn Classic

By Daily Republic staff | From Page: B8

Phelps to compete in 4 events at US nationals

By The Associated Press | From Page: B8

 
Another decent start for Woods at Firestone

By The Associated Press | From Page: B8 | Gallery

Ravens’ Rice: His actions ‘totally inexcusable’

By The Associated Press | From Page: B8

 
Dustin Johnson takes leave of absence from golf

By The Associated Press | From Page: B8

Signups for Friday, Aug. 1, 2014

By Paul Farmer | From Page: B9

 
Derrick Brooks set standard for NFL linebackers

By The Associated Press | From Page: B9 | Gallery

.

Business

Daimler launches new version of tiny Smart car

By The Associated Press | From Page: C1

 
Panasonic, Tesla to build big US battery plant

By The Associated Press | From Page: B11

SeaWorld, Southwest Airlines ending partnership

By The Associated Press | From Page: B11

 
Target taps outsider as CEO for needed shakeup

By The Associated Press | From Page: B11

Iliad of France makes surprise bid for T-Mobile US

By The Associated Press | From Page: B11

 
In San Francisco real estate, $1M won’t buy much

By The Associated Press | From Page: B11

Facebook’s Internet.org expands in Zambia

By The Associated Press | From Page: B11

 
Debit overdraft fees often exceed cost of purchase

By The Associated Press | From Page: B11, 1 Comment

.

Obituaries

Clifford C. Hemler

By Nancy Green | From Page: A4, 1 Comment

 
.

Comics

Wizard of Id

By Daily Republic Syndicated Content | From Page: A8

 
Peanuts

By Daily Republic Syndicated Content | From Page: A8

Get Fuzzy

By Daily Republic Syndicated Content | From Page: A8

 
Pickles

By Daily Republic Syndicated Content | From Page: A8

Baldo

By Daily Republic Syndicated Content | From Page: A8

 
Zits

By Daily Republic Syndicated Content | From Page: A8

Rose is Rose

By Daily Republic Syndicated Content | From Page: A8

 
Dilbert

By Daily Republic Syndicated Content | From Page: A8

B.C.

By Daily Republic Syndicated Content | From Page: A8

 
Sally Forth

By Daily Republic Syndicated Content | From Page: A8

Garfield

By Daily Republic Syndicated Content | From Page: A8

 
Frank and Ernest

By Daily Republic Syndicated Content | From Page: A8

Blondie

By Daily Republic Syndicated Content | From Page: A8

 
Baby Blues

By Daily Republic Syndicated Content | From Page: A8

Beetle Bailey

By Daily Republic Syndicated Content | From Page: A8

 
For Better or Worse

By Daily Republic Syndicated Content | From Page: A8

Cryptoquote

By Daily Republic Syndicated Content | From Page: A9

 
Crossword

By Daily Republic Syndicated Content | From Page: A9

Sudoku

By Daily Republic Syndicated Content | From Page: A9

 
Bridge

By Daily Republic Syndicated Content | From Page: A9

Word Sleuth

By Daily Republic Syndicated Content | From Page: A9