Bank of America (BAC) Legal Liability Could Reach $1.5 Billion in 2011

Bank of America (NYSE:BAC) legal losses in 2011 could come in as high as $1.5 billion, according to the recent filing of its annual report.

The giant bank gave a wide range of legal liability for the year; from $145 million to $1.5 billion. Those numbers don't include accrued liability, which the financial institution didn't reveal.

The majority of costs related to legal action will in connection to mortgage-securitization lawsuits against Countrywide Financial. A number of other banks are facing similar lawsuits and liabilities, but Bank of America more than others through its acquisition of Countrywide.

Plaintiffs claim the bank hid the weakness of the underlying mortgages that were bundled into securities they invested in, which resulted in massive losses for numerous institutional investors.

Related to the mortgage fiasco is the possibility of Bank of America having to pay out $230 million in fines because of lack of action on the foreclosing of bad residential mortgages.