Bank of America adjusts results due to legal costs

Frances colour

Bank of America has set aside $400m (£253m) due to rising litigation costs associated with a probe into foreign currency manipulation at the bank.

That more than tripled the size of its previously-reported third-quarter loss to $232m from $70m.

The bank has been engaged in “advanced discussions with certain US banking regulatory agencies to resolve matters”, it said in a statement.

Last week, Citigroup was also forced to restate its results.

And both Deutsche Bank and JP Morgan have said in separate earnings releases that they have set aside over $1bn each to deal with the same investigation.

On Monday, JP Morgan further specified that the investigation, being led by the US Department of Justice, could cost the bank as much as $5.9bn.