Bank of America will take another $13 billion in charges related to pending settlement with private label mortgage-backed securities investors, Sanford C. Bernstein said.

The brokerage sees the nation’s largest bank by assets posting a loss of 67-cents a share in the second quarter. It had earlier forecast a profit of 29-cents a share.

A group of public pension funds and a group of bondholders have challenged Bank of America Corp.’s $8.5 billion settlement with holders in soured mortgage-backed securities, which the bank expects will result in $20 billion of charges and a second quarter loss.

The bank was hit hard by toxic home loans after BofA bought mortgage lender Countrywide Financial in 2008, just as the housing market bubble was bursting, ensuing billions of dollars in losses.

Bernstein also cuts its earnings view on the nation’s top investment banks Morgan Stanley and Goldman Sachs, citing the prolonged weakness in the nation’s housing, negative impact of European debt and turmoil in the Asian markets. (Reuters)