CHARLOTTE, N.C./NEW YORK (Reuters) – Bank of America Corp said it expects to take more than $20 billion of charges after settling with mortgage bond investors, resulting in a second-quarter loss.
The sum, which includes an $8.5 billion settlement, removes a question mark that had been hovering over the bank since October, and Bank of America’s shares rallied.
“Investors can now start attaching a number to these unknowns and what they will cost the bank. With the swipe of a pen, they’ve dealt with a large chunk of these issues,” said Paul Miller, a banking analyst with FBR Capital Markets.
Chief Executive Brian Moynihan is working hard to move past the mortgage crisis, and this settlement is the latest step in that process.
But the large dollar amounts linked to the settlement and the bank’s other efforts to clean up mortgage exposure in recent months could weigh on the bank’s capital levels as most
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