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.