New Regulation Costs Bank of America More Than $10 Billion

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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.

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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.
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