Bank of America Corp (NYSE:BAC) along with other major banks like Citigroup Inc (NYSE:C), Morgan Stanley (NYSE:MS) and many more faces a legal probe for FOREX manipulation and needs to change the numbers in its earnings reports. The previous loss of $0.01 per share will now be 4 times larger, that is $0.04, but still less than $0.09 that analysts have been expecting, according to CNBC.
“Bank of America Corp (NYSE:BAC) is adjusting its third quarter earnings by $400 million after learning material information that its legal fees are rising on the back of this ongoing multi-bank probe into manipulation of the foreign currency market,” said Kayla Tausche.
This ordeal is the result of major banks colluding into rigging exchange rates for the $5.3 trillion-a-day volume of trade. Bank of America Corp (NYSE:BAC) senior officials were chatting with other peers through an electronic chatroom, which served as a pool of information regarding the planned volumes that each major entity expected to undertake. Bloomberg News reported more than one year ago that all these settlements took place in the 60-seconds windows when the benchmarks were set. This is supposed to have lasted about a decade, and the settlement seems quite cheap to wash the guilt of their hands.
“The third quarter for B of A was already marked by a massive legal charge associated with the $17 billion settlement with the department of justice. So, while this certainly is a smaller expense for them, it does seem like the tab keeps adding up for Bank of America Corp (NYSE:BAC),” informed Kayla Tausche.
Bank of America Corp (NYSE:BAC) and other entities involved took advantage of the biggest and least regulated financial market, which according to 2013 data was about $4.7 trillion-a-day. All the major regulators from Asia, Americas and Europe have been actively implicated in analyzing the case.
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