Bank of America earns $2.42 billion

CHARLOTTE, N.C. (AP) — Bank of America joined other major banks in reporting better-than-expected second quarter income Friday, earning $2.42 billion even as losses from failed loans continued to rise.

The results, which included $713 million of dividend payments tied to a federal bailout, compared with profits after preferred dividends of $3.22 billion in the same three-month period a year ago.