Bloomberg News

BofA Plans to ‘Let Judicial Process Work’ and Shun Share Sale

September 02, 2011

Sept. 2 (Bloomberg) -- Bank of America Corp., the biggest U.S. lender by assets, affirmed the company can meet capital goals without selling common stock and said it had expected some of the recent surge in mortgage-related legal actions.

“There are many non-dilutive ways for us to get there,” Chief Financial Officer Bruce Thompson said today, referring to the firm’s regulatory capital standards. Thompson commented in an internal memo to employees of the Charlotte, North Carolina- based lender.

“We’ve made tremendous progress in resolving mortgage- related legal claims,” Thompson said, adding that the bank is being sued now because in many cases, the statutes of limitations have been running out. “Now we have to simply let the judicial process work.”

Bank of America was the biggest decliner in the KBW Bank Index today, dropping 7.5 percent to $7.32 as of 2:01 p.m. in New York Stock Exchange composite trading

To contact the reporter on this story: Dawn Kopecki in New York at dkopecki@bloomberg.net

To contact the editor responsible for this story: Rick Green at rgreen18@bloomberg.net


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