Bank of America swung to a loss as the company booked $6bn of costs tied to mortgage disputes.
CEO Brian T. Moynihan is in his fifth year of cleaning up after his predecessor’s purchase of Countrywide Financial left Bank of America responsible for billions of dollars in bad mortgages. Disputes over home loans and foreclosures have cost the firm more than $50bn, including a March 26 federal accord covering bonds sold to Fannie Mae and Freddie Mac.
'The cost of resolving more of our mortgage issues hurt our earnings this quarter', Moynihan said in the statement. 'But the earnings power of our business and customer strategy generated solid results and we continued to return excess capital to our shareholders'.
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