Bank of America posts record quarterly loss of $8.8bn
- 19 July 2011
- From the section Business
Bank of America (BoA) has posted its biggest quarterly loss after agreeing an $8.5bn (£5.2bn) settlement related to sub-prime mortgages.
The US's largest bank made a loss of $8.8bn in the three months to the end of June, lower than analysts had expected.
Included in the losses are payments to investors and insurers, and charges for future claims over home loans.
The bank's revenues for the quarter were $13.2bn, down 55% from a year ago.
On 29 June, BoA announced it would take a series of one-off charges after private investors demanded the bank repurchase toxic home loans held in mortgage-backed securities.
The investors claimed BoA's home loans division used misleading information when it sold mortgage-backed securities that later defaulted during the global financial crisis.
Excluding the charges, analysts said the BoA's core operations were making progress.
"At least they're making progress. Their losses do continue to come down, away from mortgages," said Brian Charles, analyst at RW Pressprich.