April 17 - Bank of America's earnings missed forecasts, as the No. 2 U.S. bank continues to struggle with legal issues and falling revenue as it slashes costs. Bobbi Rebell reports.
Bank of America missed its mark- earnings falling short of expectations. Revenue fell across almost all of its businesses in the first quarter. Consumer banking, mortgages and debt, as well as currency and commodities trading, all turned in weaker performances. And it's still struggling with the litigation tied to its purchase of Countrywide Financial at the height of the housing crisis- announcing yet another settlement on Wednesday. Because of its lingering mortgage issues, B of A has been recovering from the financial crisis more slowly than Citigroup- the other big bank that required multiple government bailouts. CEO Brian Moynihan has also been working hard to slash costs: Paul Miller of FBR Capital Markets: SOUNDBITE: PAUL MILLER, BANK ANALYST, FBR CAPITAL MARKETS (ENGLISH) SAYING: "I think he has done as good as anybody's job in trying to get Bank of America on the right tracks here. But you know, the problem with cost cutting is that you also cut revenue along with it. It's very hard to sit there and cut a dime and not lose a dime in revenue. " While shares were down on Wednesday, the stock has had a great run over the last year. The best results came from their global wealth and investment management division- which is mostly the Merrill Lynch retail operations. SOUNDBITE: PAUL MILLER, BANK ANALYST, FBR CAPITAL MARKETS (ENGLISH) SAYING: "I think it's one of those areas that has been a highlight. I think it's also one of those areas that Bank of America has been doing well, relatively speaking, to some of these other entities out there. But yes, it's one of the other bright spots of the company. You know on the investment banking side, it's ok. You know they did not do as well on the investment banking side as Goldman or J.P. Morgan or some of these other entities." The bank also got a boost from lower credit losses, because borrowers did a better job of making their payments.