Bank of America said its profits jumped 30% in the third quarter, but that it has set aside $100 million to cover costs related to the investigations into mutual fund trading practices at the bank by New York State Attorney General Eliot Spitzer, according to published reports.
Charlotte, N.C.-based BoA, the nations third-largest bank in terms of assets, said its net income grew to $2.92 billion, or $1.92 a share in the third quarter, from $2.24 billion, or $1.45 a share in the corresponding period of last year. The earnings handily beat the Streets estimates of $1.70, according to Thomson First Call, sister company of Thomson Media, publisher of this Web site. The firm also said it upped its litigation reserve by $75 million to deal with other cases.
Last week, the firm said it would set up a restitution fund to repay shareholders hurt by the firms trading practices currently under the microscope. BoA is the firm that is said to have the most elaborate dealings with Canary Capital Management, the hedge fund at the heart of Spitzers investigation that settled with New Yorks top regulator for $40 million for its illegal trading practices.