Tuesday, July 19, 2011

Bank of America reports $9.1Billion 2Q loss

Bank of America has reported a loss of USD 9.1 billion during the second quarter of 2011.

Source: Press TV

Bank of America has reported a loss of USD 9.1 billion during the second quarter as it experiences a 54-percent decline in its revenue.

The largest bank in the United States said the loss was partly due to the USD 8.5 billion settlement with investors which was agreed on in June, the Associated Press reported on Tuesday.

The agreement settled claims by investors that the bank had sold them poor-quality mortgage bonds.

“Obviously, the solid performance in our underlying businesses continues to be clouded by the costs we are absorbing from our legacy mortgage issues,” said the bank's Chief Executive Officer Brian Moynihan.

The bank's revenue in the second quarter of 2011 declined by 54 percent to USD 13.2 billion from USD 29.1 billion in the same period last year.

The reported loss available to common shareholders was 90 cents per share, which is more than the expected 85-cents-a-share loss.

According to a Gallup report released in April 2011, more than half of the Americans describe the US economy as being in a recession or depression.

This comes while the Federal Open Market Committee (FOMC) reports that the economic recovery is proceeding at “a moderate pace.” Another 16 percent of the Americans believe the economy is “slowing down.”

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