Bank of America Reaches Settlement

Joseph Byrne Thursday, April 18, 2013

According to LIBN, Bank of America has agreed to a settlement of the class-action suit that was brought by investors who bought mortgages from Countrywide Financial. This announcement came as Bank of American reported a higher net income in the first quarter.

Bank of America said that it would pay $500 million to settle the lawsuit brought by pension funds who said that Countrywide has misled them about the health of the mortgages that were sold.

This announcement was made while also reporting first-quarter results. Profit soared, but there were some accounting changes that affected results. Revenue dipped just a bit, profits did not reach goals, and investors send stock down 30 cents 45 minutes ahead of market opening.

“We feel like we made a lot of progress this quarter and there’s a lot more to do,” said Chief Financial Officer, Bruce Thompson.

The bank funded $25 billion in mortgages, which is an increase of 56% from a year ago. Refinancing made up more than 90% of that number. However, the mortgage division as a whole continued to see a loss, due to legal costs. This led the bank to continue to cut jobs and expenses. It trimmed 16,000 jobs over the year.

Bank of America has seen its share of trouble, but is sure to get back to the top after they take care of the mess that they bought with Countrywide. 

joeb@longislandyellowpages.com

Appears In: Business News

 

 

• Business News
• Education
• Entertainment
• Jobs & Careers
• Local Events
• Local Steals, Deals & More
• Press Releases
• Restaurants & Food
• Sports & Recreation

Columnists John M.   Show all Columnists