Bank of America reverses loss and earns $2 billion

NEW YORK (AP) -- Bank of America made $2 billion in the last three months of last year, reversing a loss from a year earlier. It offset legal expenses over mortgages and losses in its investment banking business by selling debt and its stake in a Chinese bank.

The bank said today that it made 15 cents per share in the fourth quarter. That fell short of the 22 cents expected by analysts surveyed by FactSet, a provider of financial data, but was in line with other estimates.

For the year, the bank made $1.4 billion. It lost $2.2 billion in 2010.

Bank of America has been raising cash by selling pieces of itself that don't fit into its basic banking model. The strategy was also a way to prepare for a Federal Reserve stress test, which is under way, and meet international regulatory standards.

"We enter 2012 stronger and more efficient after two years of simplifying and streamlining our company," CEO Brian Moynihan said.