Bank of America (BAC: 14.19 +0.50%) Chief Executive Officer Brian Moynihan will conduct the bank's first annual investor conference under his leadership Monday morning to address the company's current financial state and field questions from investors on potential losses tied to mortgage loans and other financial issues.
The last time BofA held a similar conference was early 2007 when Ken Lewis was still CEO, and the bank had yet to acquire beleaguered mortgage lender Countrywide Financial.
The Charlotte-based bank continually faces criticism from investors over its handling of subprime loans, and its acquisition of troubled subprime lender Countrywide in 2008. That deal brought all of Countrywide's underperforming mortgage assets under the BofA umbrella.
Investors are expected to question Moynihan Monday to see if mortgage-related losses will cut deeper as the banking giant faces more demands from investors who want compensation for subprime loans they acquired.
Bank of America reported that expenses tied to litigation and regulatory issues could cost the bank as much as $1.5 billion in 2011. The bank spent more than a $1 billion last year on legal and regulatory issues, according to filings with the Securities and Exchange Commission.
Barclays Capital (BCS: 20.49 +0.10%) analysts also expect investors holding Countrywide bonds to hold out for a favorable settlement from Bank of America as they try to recover losses on mortgage-backed securities.
Write to Kerri Panchuk. HousingWire March 7, 2011
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