BofA raises estimate from potential legal, regulatory losses to $5.1B

The lender says the U.S. Attorney’s office plans to recommend civil action against Bank of America

As the odds of the Department of Justice (DOJ) filing another suit tied to mortgage bonds increases, Bank of America Corp. — the United States’ second biggest lender — raised its estimate of potential added loses from legal and regulatory matters by 82 percent to $5.1 billion.

The Charlotte, N.C.-based lender said in a quarterly regulatory filing that the U.S. Attorney’s office plans to recommend civil action against Bank of America, which is tied to the bundling of home loans into securities, Bloomberg reported.

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Erin E. Harrison

Erin E. Harrison is the Editor in Chief of InsideCounsel magazine. Harrison’s professional background includes extensive expertise in both print and online media, highlighted by...

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