Bank of America has reported a quarterly loss of US$276m and was pushed into the red by legal costs including US$3.6b over mortgage-backed securities.
Chief executive Brian Moynihan said: ‘The cost of resolving more of our mortgage issues hurt our earnings this quarter.’ The bank said that the $3.6b related to a settlement with the Federal Housing Finance Agency over claims that the bank had mis-sold the securities to the government-backed mortgage companies Freddie Mac and Fannie Mae. The rest of the legal costs also relate, in the main, to mortgage-related issues
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