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Bank of America Corp reported an unexpected first-quarter loss on Wednesday after it took a $6 billion charge to cover litigation expenses, a figure that far exceeded the legal settlements the No. 2 U.S. bank has announced recently. The bank had previously said that a settlement would cut into its earnings by $3.7 billion before taxes. The extra litigation expenses came from setting aside money to cover future legal settlements tied to previously disclosed mortgage-related matters, Chief Financial Officer Bruce Thompson told reporters. Still, the bank's setting aside more money does not mean a settlement is imminent, Thompson told analysts on a separate conference call.
By Tom Bergin LONDON (Reuters) - Starbucks Corp will move its European headquarters to London from the Netherlands this year and pay more tax in the UK as a result, the company said on Wednesday. The shift by the world's largest coffee chain comes after its low tax contributions in Britain provoked widespread criticism, including Prime Minister David Cameron telling a meeting in Davos that companies that avoided paying tax needed to "wake up and smell the coffee". Starbucks was called to testify before a parliamentary hearing about its tax affairs after Reuters reported in 2012 that the company had told the UK tax authority its British arm was a loss-making business while informing investors that the subsidiary was profitable. The company revealed at the hearing that it had agreed a deal with Dutch tax authorities allowing it to pay "a very low tax rate" there.