BOA incurred a pre-tax Litigation Expense of $6.0 Billion in the last quarter, resulting in a Loss of $276 Million
BOA have not paid full tax in a while, since they still have accumulated losses on their balance sheet
if not for the $6.0B expense, their earnings would have been normal. the PE ratio based on normalised earnings for the last 4 quarters is about 12
also, from two days ago:
Updated, 9:03 p.m. | Bank of America disclosed on Monday that it had made a significant error in the way it calculates a crucial measure of its financial health, suffering another blow to its effort to shake its troubled history.
The mistake, which had gone undetected for several years, led the bank to report recently that it had $4 billion more capital than it actually had. After Bank of America reported its error to the Federal Reserve, the regulator required the bank to suspend a share buyback and a planned increase in its quarterly dividend.
to add:
Bank of America’s fixed-income trading operations suffered from declining client demand and low interest rates — a fate none of the largest Wall Street firms has escaped in the first quarter. The bank’s fixed-income trading revenue fell 15 percent in the first quarter when adjusting for a one-time write-down in the same period a year ago. But overall markets revenue increased, fueled by solid results in equities and credit trading.
