BofA Reports $8.8B Loss
Bank of America lost $8.8 billion in the last three months, due largely to an $8.5 billion mortgage settlement. The dark clouds of the bank's 2008 Countrywide acquisition still linger, but CEO Brian Moynihan told investors on a conference call this morning other parts of BofA are strong. "This quarter shows the power of the rest of our franchise, which has been covered up by losses from mortgage," said Moynihan. "Each business line other than mortgage had solid earnings and returns, earning in all over $5.7 billion after tax." BofA's stock is now trading below $10 - a low the bank hasn't seen since 2009. Some investors worry BofA's struggle to overcome its mortgage problems could force the bank to raise more capital. But Moynihan told investors this morning Bank of America that won't be necessary. Wells Fargo's revenues were also down last quarter, but the bank still managed to turn a $3.9 billion profit, which it reported today.