BofA Warns of More Legal Disputes as Potential Costs Rise
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Bank of America Corp., the second-biggest U.S. lender, said the Department of Justice may file another suit tied to mortgage bonds and raised its estimate of possible added losses from legal and regulatory matters by 82 percent to $5.1 billion.
A U.S. Attorney’s office intends to recommend civil action against the Charlotte, North Carolina-based lender tied to the bundling of home loans into securities, the firm said yesterday in its quarterly regulatory filing. The bank also said its eventual legal costs could exceed even its revised estimates.