Tomahawk, WI 11/06/2013 (BasicsMedia) – Bank of America Corp (NYSE:BAC) after being entangled in a lawsuit with Fannie Mae and Freddie Mac was at it again as it persuaded a federal judge to dismiss a lawsuit in which it is accused of shortchanging Texas Counties out of uncollected mortgage filing fees. After submissions from both parties the US District Judge Reed O’Connor threw out the claims on fraudulent misrepresentation and claims of unjust enrichment. The judge made the verdict after claiming the plaintiff had failed without any doubt to raise genuine material fact that Dallas County was injured by Bank of America actions.

The massive lawsuits that have befallen Bank of America in the past quarter have not done much to destabilize the bank in the markets. Bank of America litigation monsters may continue in the next coming weeks as the department of justice has taken a huge bite on JPMorgan Chase & Co. (NYSE:JPM). Bank of America is also thought to be in line to experience the same beast that befell JPMorgan Chase. Bank of America could soon be making a payment settlement of $6.8 billion with the Federal Housing Finance Agency. Bank of America investors were earlier in the week dismayed by a judge ruling that they could not go on with a lawsuit against the bank. The judge in his verdict made it clear to the investors that the bank did enough to prepare them against substantial and rising litigation risks.

AIG’s lawsuit against the Bank of America dealt with losses on mortgage bond investments is thought to be worth $10 billion. It’s not Bank of America only that has been greatly hit by the lawsuit litigations, Only last month JPMorgan Chase was forced to pay $5.1 billion to the Federal Housing Finance Agency to sweep way accusations that it had lied to Fannie Mae and Freddie Mac about the quality of its mortgage investments. Other banks with similar lawsuits include, Morgan Stanley and Goldman Sachs Group Inc. Bank of America has come out in the open to claim its legal losses due to the lawsuit could go more than $5.1 billion beyond its reserves. It is not only investors who will be worried about the current miss-happenings facing the third largest bank in America.

Employees at Bank of America Corp (NYSE:BAC) also have their worries to nurse for the time being. This is after the bank announced plans to slash about 3,000 mortgage jobs in the fourth quarter. The miss-happenings that have befallen the company as a result of its dealings in the mortgage industry are thought to be the main reason for this abrupt move in job cuts in an attempt of trying to slash down the wage bill. The bank is trying to respond to the drop in refinancing that it is currently facing. The bank has already notified about 1,300 employees about the termination of their services. The job cuts will be carried out mainly in the mortgage unit group and home loans fulfillment units with the job cuts expected to take effect mostly in California and Texas.

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