BofA reports worst ever loss, margins shrink

(Reuters) - Bank of America Corp (BAC.N) reported a record quarterly loss of $8.8 billion as persistent mortgage problems and low interest rates squeezed revenue at the largest U.S. bank.

The loss was expected after the bank said in June it would pay $8.5 billion to settle lawsuits from mortgage bond investors and take more than $14 billion of other home loan-related charges. But investors were troubled by indications that a tepid economy is retarding recovery outside of mortgages.