Bank of America reverses loss and earns $2 billion

[January 19, 2012]  NEW YORK (AP) -- Bank of America says it made $2 billion in the last three months of 2011 from selling its stake in a Chinese bank and selling debt. That offset losses and higher legal expenses in its mortgage business.

The bank said Thursday that it earned 15 cents per share, falling short of the 22 cents a share expected by analysts surveyed by data provider FactSet. In the same quarter last year, the bank lost $1.2 billion.

The bank is selling parts of the business that don't fit into its basic banking model. For the year, the bank made $1.4 billion, compared with a loss of $2.2 billion in 2010.

Bank of America shares are up almost 4 percent to $7.05 in pre-market trading.

[Associated Press; By PALLAVI GOGOI]

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