Friday, November 2, 2012

BofA's Thompson says litigation will 'quiet down'

Bank of America chief financial officer Bruce Thompson told investors Friday that he expects the volume of litigation filed against the bank to soon "quiet down."

He said that the majority of lawsuits faced by the Charlotte bank come in the mortgage realm and deal with loans made between 2005 and 2008. Federal suits on mortgage issues must be filed within three years, Thompson said, and state suits have a six-year window.

"You clearly expect, for us, for litigation to continue to quiet down," Thompson told investors at the BancAnalysts Association of Boston Conference. "We continue to work very hard to put these legacy issues behind us."

Thompson also tried to impress upon investors that the bank was in a position to increase its revenue going forward. After acknowledging that he frequently hears that investors worry that the shrinking Bank of America has less ability to make money, Thompson said that taking out one-time accounting charges, Bank of America brought in slightly more money in the third quarter than it had the year before.

"We're at a point where you should judge us on how we're doing going forward," Thompson said.


Gerald Harris said...

Litigation seem to be a very common word these days in dealing with the Mortgage aspect of the banking industry. We are still in recovery from the Sub-prime meltdown. The only thing, I believe will cure this economy is time. Time will heal all wounds. The economy will bounce back.