Bank of America had a rough second quarter, winding up $9.1 billion in the red, mostly caused by the $8.5 billion settlement it had to pay out to 22 investment groups over mucked up securities. The bank has paid out $12.7 billion in settlements this year.
The AP reports the company’s stock has plunged 35 percent this year, but BofA CEO Brian Moynihan sees a bright side: The company’s finances were stronger in the second quarter this year than they were a year ago, and the bank won’t need to raise capital to cushion against potential losses. An analyst quoted in the story counters that BofA’s heavy losses make it more vulnerable in an economic slowdown.
How much does a bank’s financial performance factor into whether or not you do business with it?
Bank of America loses $9.1b [AP via Boston.com]