Bank of America reported a loss of 5 cents per share in its first quarter earnings report, as its results were weighed down by $6 billion in litigation expenses.
This charge, hardly the first Bank of America has taken on mortgage-related legal issues, is a perfect example of why investors should stay away from the stock, according to Marc Lichtenfeld of the Oxford Club.
“I would not touch this stock right here,” Lichtenfeld said. “Bank of America has a very complex business model. You’ve got hands and arms and tentacles reaching in every different direction. You also have regulators and lawyers breathing down the companies neck. And they have these – every quarter – one-time litigation expenses.