Bank of America said that it was facing two new investigations related to its activities in foreign currency exchange markets and its handling of government-backed mortgages in the United States.
The banks said in a securities filing late Tuesday that it was cooperating with both inquiries. Traders at multiple global banks are under investigation over allegations that they manipulated the price of foreign currencies.
Bank of America said that it was now among “a significant number of FX market participants,” that authorities in North America, Europe and Asia were examining.
The Charlotte-based bank also said that federal prosecutors in the Eastern District of New York were investigating whether the company complied with requirements of a Federal Housing Administration program.
The fresh legal investigations could add to the bank’s mounting litigation costs. The bank said that it expected that litigation-related losses could total about $6 billion, up from a previous estimate of $5 billion.
A series of settlements between banks and federal authorities last year have ratcheted up the estimates of settling mortgage-related cases.
After obtaining a record $13 billion penalty from JPMorgan Chase last year over selling soured mortgages, the Justice Department is pursuing similar actions against other banks, including Bank of America.
An analysis prepared by a law firm that represents banks estimated that Bank of America might have to pay out $11.7 billion in penalties and contribute $5 billion in relief to homeowners to settle with the Justice Department.
Also, the bank said that it had reached an agreement with Warren E. Buffett’s Berkshire Hathaway conglomerate to amend the terms of his $5 billion stake in Bank of America.
The bank cannot call Berkshire’s preferred shares for five years. Under the previous terms, the bank could call, or redeem them, at any time. In return, Mr. Buffett has agreed not to require the bank to pay him any dividends on those share if times turn tough.
The new deal will help the bank use Berkshire’s stake as Tier 1 capital, and comply with newly approved global banking regulations.
Peter Eavis contributed reporting.