Hits keep coming for Bank of America - | WBTV Charlotte

Hits keep coming for Bank of America

CHARLOTTE, NC (WBTV) - Harsh headlines are hanging like clouds over Charlotte's crown jewel.

Bank of America has been beset by a slew of negative news this month, and yesterday was really rough.

Yet another big name - US Bancorp - filed suit against BofA over mortgage loans, alleging the bank misrepresented them, and this is just the latest in a pile of lawsuits looking to recover billions for investors.

Plus, the FDIC announced it would contest a settlement BofA offered on one of those suits.

The bank wants to pay $8.5 billion to make it go away.  The FDIC isn't sure that will be enough.

Meanwhile, the bank's stock is sinking, and CEO Brian Moynihan is struggling mightily to prove BofA is in good financial shape. But investors don't appear to believe him.

"We don't have a liquidity problem at Bank of America," says analyst Paul Miller. "What we have is a confidence problem in the management team."

Of course, it's not just management's fate in jeopardy. Thousands of people work for the bank here in Charlotte, and an undisclosed number of them will be laid-off as Moynihan tries to make the bank as lean as possible to battle all those lawsuits.

 

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