JPMorgan Chase & Co. (JPM), Wells Fargo & Co (WFC): Bank of America Corp (BAC)’s Legal Liability Is About to Soar

How much more? That is unknown, but B of A is concerned — so much so, that it listed the possibility that the case might be struck down in its “Risk Factors” section on its last 10-K form. The bank notes that it estimates additional liability to be about $4 billion above its year-end reserves.

According to some experts, however, that estimate could be a little low. Back in February, CSLA analyst Mike Mayo opined that the big bank may need closer to $30 billion; others, like Mark Palmer of BTIG Research, thinks $60 billion is closer to the mark.

So, while another $7.4 billion added to Bank of America Corp (NYSE:BAC)’s liability sheet might seem tiny, it is just one of many additional burdens the big bank will have to bear. And no one — not even B of A itself — knows how many more will be coming down the pike any day now.

The article Bank of America’s Legal Liability Is About to Soar originally appeared on Fool.com and is written by Amanda Alix.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America, JPMorgan Chase, and Wells Fargo.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.