BofA reports loss of $1.6 billion in 4Q

NEW YORK: Bank of America is reporting a loss of $1.6 billion in the fourth quarter after the bank increased costs related to soured home loans.

Bank of America Corp. said on Friday that its loss available to shareholders after paying dividends was 16 cents per share. Analysts surveyed by FactSet had forecast the bank would earn 18 cents a share. Excluding a charge of $2 billion related to the home loans, the bank would have earned 4 cents a share.

A year earlier, Bank of America had a loss of $5.2 billion. The bank also kept aside an extra $4.1 billion for bad home loans that it could be forced to buy back from Freddie Mac and Fannie Mae and other investors.

CEO Brian Moynihan called 2010 ``a necessary repair and rebuilding year'' for the bank.