BofA Posts Record Quarterly Loss on Costs of Bad Home Loans
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Bank of America Corp. posted the biggest quarterly loss in the lender’s history after Chief Executive Officer Brian T. Moynihan booked more costs tied to defective mortgages and revenue continued to slide.
The second-quarter loss of $8.83 billion, or 90 cents a share, compared with profit of $3.12 billion, or 27 cents, a year earlier, the lender said today in a statement. Ed Najarian, head of bank research at International Strategy & Investment Group, called revenue “fundamentally” weak and Paul Miller at FBR Capital Markets said doubts about earnings power may prompt analysts to lower their ratings.