The Golden Truth: Bank Of America Earnings Comedy

``if you scan through the slide show you'll find an interesting comment about loss reserves.  It turns out in this case that BAC is part of a group of banks being sued over guarantees made to investors who invested in the fraudulent mortgages originated by these banks during the housing bubble.  In here, BAC acknowledges that they are under-reserved for this by at least $5 billion.  In other words, if Bank of America were honestly applying GAAP accrual accounting, they would have taken at $5 billion charge against earnings, thereby wiping out the $2 billion net income stated and they would have reported a $3 billion loss. ''