CHARLOTTE, N.C., Aug 6 (Reuters) - Bank of America Corp projects that its losses from pending litigation could be as high as $1.4 billion, the company disclosed in its second-quarter report filed Friday with securities regulators.
The bank said its potential losses could range from $250 million to $1.4 billion for some, but not all, of the outstanding litigation involving the company.
The estimate is a rare projection by Bank of America of the potential losses associated with a range of lawsuits, many of which stem from the financial crisis.
Separately, the bank also said in its quarterly report it must raise an additional $1.1 billion by year's end to satisfy a Federal Reserve requirement from its bailout aid repayment.
When Bank of America repaid its $45 billion in government aid last December, it was required to raise an additional $3 billion by the end of 2010 as part of the repayment plan.
It has sold $10 billion in assets as part of that process, netting $1.9 billion in after-tax proceeds.
If the year-end deadline isn't met, the bank will raise the funds through an equity raise.
Shares in Charlotte, N.C.-based Bank of America closed down 0.43 percent at $13.96 on the New York Stock Exchange.
(Reporting by Joe Rauch; Editing by Gary Hill)
((joe.rauch@thomsonreuters.com; +1 704 692 5885; Reuters Messaging: joe.rauch.reuters.com@reuters.net ) Keywords: BANKOFAMERICA/LITIGATION
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The bank said its potential losses could range from $250 million to $1.4 billion for some, but not all, of the outstanding litigation involving the company.
The estimate is a rare projection by Bank of America of the potential losses associated with a range of lawsuits, many of which stem from the financial crisis.
Separately, the bank also said in its quarterly report it must raise an additional $1.1 billion by year's end to satisfy a Federal Reserve requirement from its bailout aid repayment.
When Bank of America repaid its $45 billion in government aid last December, it was required to raise an additional $3 billion by the end of 2010 as part of the repayment plan.
It has sold $10 billion in assets as part of that process, netting $1.9 billion in after-tax proceeds.
If the year-end deadline isn't met, the bank will raise the funds through an equity raise.
Shares in Charlotte, N.C.-based Bank of America closed down 0.43 percent at $13.96 on the New York Stock Exchange.
(Reporting by Joe Rauch; Editing by Gary Hill)
((joe.rauch@thomsonreuters.com; +1 704 692 5885; Reuters Messaging: joe.rauch.reuters.com@reuters.net ) Keywords: BANKOFAMERICA/LITIGATION
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.