Boston, MA 02/03/2014 (wallstreetpr) – Bank of America Corp (NYSE:BAC) $8.5B settlement for losses that investors incurred in mortgage backed securities has received an approval from a New York Judge. This is positive news considering BAC has been struggling in the recent past to resolve the litigation that has had negative effects on it in the market since the financial crisis. The settlement is the largest that the bank has been engulfed since the economic meltdown of 2008. The settlement involves 22 large investors some of whom include the likes of BlackRock, Freddie Mac and Metlife.
A portion of the settlement that involves modified loans was not approved by Justice Barbara Kapnick as settlement opponents were of the opinion that BAC was required to purchase any modified loans. Despite this turnaround of events, BAC spokesman Lawrence Grayson was quick to point out that his party was pleased with the court’s decision. BAC has been faced with many litigation cases having already paid a total of $55.8 billion for legal entanglements. The litigations have greatly weighed into the company’s stock although the company is on a path to recovery.
BAC Q4 earnings beats estimates
Despite Bank of America Corp (NYSE:BAC) spending most of its time in litigation cases its Q4 earnings beat analysts expectation by clocking total revenues of $21.7 billion from the previous year same quarter earnings of $18.9 billion. This clearly shows that the company could do even better once all the cases come to a halt and the company focuses on growth policies. The company’s net income stood at a high of $3.4 billion compared to the same quarter of the previous financial year earnings of $732 million. Its earnings per share during the fourth quarter stood at an impressive mark of 29 cents per share. Full year results shows the company total revenue hit the $89.8 billion mark with a net income of $11.4 billion and earnings per share of 90 cents.
Bank of America Corp (NYSE:BAC) closed trading on Friday January 31, 2014 at a low of $16.75 representing a drop of 1.06%
