Bank of America Corp. has hired law firm Davis Polk & Wardwell LLP to help investigate the lending arrangement that led to a $292 million hit in the company's fourth-quarter 2017 earnings, The Wall Street Journal reported Feb. 7.
The losses are connected to loans made with South African home retailer Steinhoff International Holdings NV, whose stock plummeted in December 2017 after disclosing potential accounting irregularities.
"People familiar with the matter" told WSJ that the inquiry, which started late in 2017, is investigating whether BofA could have avoided the losses.
BofA, Citigroup Inc., Goldman Sachs Group Inc. and JPMorgan Chase & Co. reported a combined hit to fourth-quarter 2017 earnings of over $1 billion, with Citi suffering losses of up to $370 million, the publication added.
