New Regulation Costs Bank of America More Than $10 Billion

More

Bank of America announced its third quarter earnings on Tuesday. They wouldn't have been too bad if it wasn't for Congress. The bank would have made a profit of more than $3.1 billion, but the Dodd-Frank financial regulation bill drove it to a loss of $7.3 billion. Lauren Tara LaCapra from TheStreet.com explains:

The firm's card business lost $9.9 billion, reflecting two issues related to the Dodd-Frank reform measure. Bank of America posted a goodwill impairment charge of $10.4 billion, which came in higher than the $7 billion to $10 billion range management had earlier predicted for the third quarter. Revenue dropped 21% because of that bill, as well as the C.A.R.D. Act, which limits the fees big banks can charge consumers or merchants.

The big $10.4 billion charge was due to less expected future revenue from debit interchange fees, according to a Bank of America press release.

Read the full story at TheStreet.com.

Jump to comments
Presented by

Daniel Indiviglio was an associate editor at The Atlantic from 2009 through 2011. He is now the Washington, D.C.-based columnist for Reuters Breakingviews. He is also a 2011 Robert Novak Journalism Fellow through the Phillips Foundation. More

Indiviglio has also written for Forbes. Prior to becoming a journalist, he spent several years working as an investment banker and a consultant.
Get Today's Top Stories in Your Inbox (preview)

Sad Desk Lunch: Is This How You Want to Die?

How to avoid working through lunch, and diseases related to social isolation.


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Where Time Comes From

The clocks that coordinate your cellphone, GPS, and more

Video

Computer Vision Syndrome and You

Save your eyes. Take breaks.

Video

What Happens in 60 Seconds

Quantifying human activity around the world

Writers

Up
Down

More in Business

Just In