CALL US TODAY

(727) 785-5100

FOR A BUSINESS LAW CONSULTATION

Bank of America’s Profits Down as Litigation Costs Eat Away 43% of Earnings

Written on August 12, 2014

business litigation lawMassive legal fees for mortgage litigation ate into a significant chunk of Bank of America’s second-quarter earnings.

According to a July 16 Los Angeles Times article, the second-largest bank in the U.S. took a $4 billion hit in its second quarter, which depleted its profits by 43%.

These $4 billion in legal costs, reports the Los Angeles Times, come from mortgage litigation fees stemming from the Charlotte, N.C. bank’s 2008 purchase of Countrywide Financial Corp., a high-risk home lender based in Calabasas. In the years leading up to the recession, Countrywide Financial was one of the major lenders that enabled so many Americans to purchase houses they couldn’t actually afford.

According to the Boston Globe, Bank of America earned $2.3 billion in profits on revenue of $22 billion in the second quarter of 2014.

Throughout the United States, business litigation law is one of the biggest types of legal cases. In many courts across the country, more than 60% of all cases are usually filed by businesses; in addition, some 58% of small businesses reported needing to hire a lawyer for small business for their business litigation law process.

But what is business litigation, exactly?

According to the Florida Bar, the business litigation definition is the “practice of law dealing with the legal problems arising from commercial and business relationships including litigation of controversies arising from those relationships.”

And despite Bank of America’s business litigation attorney fees cutting into a major part of its profits, chief executive Brian Moynihan remains optimistic about the bank’s future, according to the Los Angeles Times.

“The economy continues to strengthen, and our customers and clients are doing more business with us,” Moynihan said in a statement.

TESTIMONIALS

I strongly endorse Andrew Mongelluzzi. He is a very skilled and able business attorney focused on customer service and results. On the front end, Andrew deftly advises new businesses on organizing properly, acquiring necessary licenses, contracting with vendors & customers, and dealing with various compliance issues that may arise. On the back end when things go south, Andrew counsels and navigates businesses through complex commercial disputes and aggressively represents them in negotiations, mediation, arbitration, and in litigation so that businesses can legally move on and get back to business. Andrew’s ability to identify legal issues and approaches to resolve business-related issues is a strength that I have learned from and professionally relied upon in approaching the business matters and cases that I handle. I regularly refer business to Andrew knowing that he will diligently represent his business clients and their best interests.
Relationship: worked together on matter

- Frank N. Genco, Florida Bar No. 440086

Attorney Mongelluzzi and his team provided excellent and quality service. I always felt that my needs were met and that the firm was invested in me and my case. The quality services I received at Mongelluzzi’s firm were remarkable. From the initial meeting they were responsive to my calls, questions and concerns. All issues were handled professionally and timely, easily accessible, got back to me quickly, aggressive and got me the results that I wanted. Attorney Mongelluzzi and his staff all gave my case their personal attention and provided the quality of work that anyone would want when hiring an attorney.

- Client

Andrew is very thorough defining the outcome expectations. In my case, it was setting up a new corporate entity. He advised me on the most beneficial option and he then executed on that path. Andrew is a very pleasant person to work with. He is determined, skilled and committed to his client’s success.

- Gil Pinney

Andrew helped me through a difficult situation with American Express and we won the case. A great job by Andrew! He also helped me with T&C’s in my company. I would recommend Andrew highly as an attorney.

- John Sams

As a business owner for 12 years I have seen my fair share of ups and downs. Some of the downs would include landlord/tenant disputes and creditors that may have not been fulfilled to agreement. Andrew has met both of these situations for me in a timely, positive, and affordable manner.

- Rich Mattes

It was very nice to have a lawyer who not only is fierce in negotiations but has been successful in business. This is a lethal combination. I was glad he was on my side.

- Nigel Castanheiro

Andrew helped me with a contract litigation case. The lawyers battled it out for over a year and we finally got a reasonable settlement offer. Then the other side tried to back out. Andrew figured out how to force the other side to honor the deal and really knows his way around the court system. Definitely feel comfortable using him again.

- John Ellis

EMAIL US

  • *Contacting Clearwater Business Law or any individual at the firm through this form does not establish an attorney-client relationship. Any time-sensitive or confidential information pertaining to your case should NOT be sent through this form. Thank you.
  • This field is for validation purposes and should be left unchanged.