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

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).
Comments (3)
  • 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
  • "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
  • 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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