Moynihan, who took over a year ago, noted that the bank earned $10.2 billion before goodwill impairment charges, “rebuilt our capital positions, reduced the risk on our balance sheet and shed more than $19 billion in assets that didn’t directly serve customers and clients.”
The bank had $12.4 billion in 2010 impairments on the mortgage and credit card divisions that were purchased by Moynihan’s predecessor, Kenneth Lewis, according to the statement.
The mortgage unit posted a $4.97 billion quarterly loss, increasing from $994 million a year ago, on the provision and goodwill charge.
The 2008 purchase of Countrywide has set the bank back with lawsuits and demands to repurchase bad loans. Earlier this month, the bank agreed to buy back $2.8 billion in mortgage loans based on faulty information from Fannie Mae and Freddie Mac.
Meanwhile, attorneys general in all 50 states are investigating whether there were paperwork problems with foreclosures done by banks and loan servicers. In early October, Bank of America halted all foreclosures before resuming some as they went through the documents.
The bank faces lawsuits from insurers including MBIA and Ambac Financial Group. Those groups allege that Countrywide fraudulently induced the firms to guarantee bonds composed of faulty mortgages.