Bloomberg News

BofA Says $3.6 Billion in Additional Legal Losses Still Possible

February 24, 2012

Feb. 23 (Bloomberg) -- Bank of American Corp. reiterated that “reasonably possible” losses from litigation may reach $3.6 billion in addition to funds the firm has already accrued.

The figure, excluding matters in which potential losses are too difficult to calculate, was disclosed in the Charlotte, North Carolina-based firm’s annual filing today. Losses beyond accruals may be as low as zero, the firm said, repeating an estimate range it provided in a quarterly filing in November.

Bank of America was among five mortgage servicers that agreed this month to a $25 billion settlement of state and federal probes into shoddy foreclosure practices. The deal allowed regulators to pursue the industry over claims regarding the packaging of loans into securities.

To contact the reporter on this story: Hugh Son in New York at hson1@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net


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