Bank of America posted an unexpectedly sharp drop in first-quarter profit as higher expenses from delayed home foreclosures weighed on its mortgage business.
The largest US bank lost more than $2.39 billion in its home loan business as revenue fell and expenses rose. The foreclosure chaos that began in the fourth quarter of 2010, with borrowers accusing major banks of repossessing homes without having the right paperwork in place, was a key source of higher costs in the quarter.
The bank also named chief risk officer Bruce Thompson as its new chief financial officer, becoming the sixth CFO in seven years.
In addition to the foreclosure costs, the bank reported a shrinking loan portfolio.
The bank did manage to earn $2 billion in the latest quarter, its first profit since the second quarter of 2010. – (Reuters)
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