BofA to take $13 billion more in charges: Bernstein
(Reuters) - Bank of America will take another $13 billion in charges related to pending settlement with private label mortgage-backed securities investors, Sanford C Bernstein said.
The brokerage sees the largest U.S. bank by assets posting a loss of 67 cents a share in the second quarter. It had earlier forecast a profit of 29 cents a share.
A group of public pension funds and a group of bondholders have challenged Bank of America Corp's $8.5 billion settlement with holders in soured mortgage-backed securities, which the bank expects will result in $20 billion of charges and a second-quarter loss.
The bank was hit hard by toxic home loans after BofA bought mortgage lender Countrywide Financial in 2008, just as the housing market bubble was bursting, ensuing billions of dollars in losses.
Bernstein also cuts its earnings view on top U.S. investment banks Morgan Stanley and Goldman Sachs, citing the prolonged weakness in U.S. housing, negative impact of European debt and turmoil in the Asian markets.
(Reporting by Rachel Chitra in Bangalore; Editing by Don Sebastian)