Bank of America faces up to $1.5 billion in legal losses in 2011, according to a Wall Street Journal report.  The report, citing the bank’s recently filed annual report, says Bank of America disclosed it estimates between $145 million and $1.5 billion in expenses tied to lawsuits in 2011.  That doesn’t include accrued liability, a figure not disclosed.

Most of the expected legal costs will be tied to mortgage-securitization lawsuits and similar demands.  Thanks to Countywide Financial – the acquisition that keeps on giving – Bank of America is faced with a number of angry investors over mortgage securities packaged by Countrywide that are now riddled with bad mortgages.  Bank of America settled a lawsuit for $600 million with New York pension funds and others tied to mortgage securities at Countrywide.