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Third-Quarter Loss of BofA Triples as Forex Legal Expenses Escalates • Mirror Daily

During the third quarter, the Bank of America reported a tripled loss of 232 million dollars, in an alteration, which added legal expenses associated with worldwide investigations into forex trading within major banks.

Global regulators are examining accusations that dealers conspired, manipulating key reference rates within the foreign currency market that creates 5.3 trillion dollars per day, and which is the least regulated in the world.

The bank altered its results, adding 400 million dollars to its legal reserve unit in covering expected reimbursements attributable to forex or foreign exchange. The bank also said the revision was included in advanced meetings with the US regulators in resolving the matter.

The company also stated that Bank of America is under investigation by authorities in Asia, Europe, and the North America, however, did not specify which regulators the company was having talks with.

Financial regulator of Britain has also heightened discussions with 6 major banks over the conspiracy and manipulation allegations, setting up a group payment, which could cost 2 billion pounds or 3.26 billion dollars.

He Citigroup Inc. stated last month that it was saving 600 million dollars in covering legal charges during the third quarter as regulatory inquiries are rapidly evolving.

The additional charges extended the bank’s net loss of 232 million dollars or 4-cent per share, compared to the 70 million or one-cent per share net loss, which was reported on October 15.

The company’s litigation-related losses forecast lowered to 3 billion dollars from the 5 billion. Company shares dropped 1% at 17.23 dollars in extended trade.

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