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More on the BofA (BAC -0.9%) settlement: The $2.43B payment will be covered by existing...

Friday, September 28, 2012, 9:40 AM ET
More on the BofA (BAC -0.9%) settlement: The $2.43B payment will be covered by existing litigation reserves and Q3 litigation expenses of $1.6B. Additionally, the bank expects Q3 pre-tax earnings to take a $1.9B hit as improving credit spreads force a DVA. The bank also tosses in an $800M charge thanks to U.K. corporate tax changes. All told, the expected hit to Q3 EPS is $0.28/share (the bank earned $0.19 in Q2). Previous (I, II).

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This news story has 3 comments:

Techmonkey Comments (24)

Note in the last quarter, the reserve release was....$1.9B. Will another reserve release offset much of this?

28 Sep 2012, 10:20 AM Reply Like

Zanalyst Comments (76)

"Note in the last quarter, the reserve release was....$1.9B. Will another reserve release offset much of this?"

Why stop at $1.9B? Why not release $5B, so BAC can pay dividends and buy back stock?

28 Sep 2012, 05:46 PM Reply Like

A Newell Comments (330)

Yes, a 20 cent div would sure be nice. But if so, would the government have another large spotted cow?

29 Sep 2012, 12:13 PM Reply Like

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