Bank of America lost $7.7 billion in Q3 on charge related to CARD Act

[jpljr77]

http://finance.yahoo.com/news/Bank-of-America-posts-77B-apf-4096614857.html?x=0&.v=5">NEW YORK (AP) -- Bank of America Corp. said Tuesday it lost $7.65 billion during the third quarter due to a charge related to credit and debit card reform legislation passed over the summer.

In a dramatic shift, the bank also said it will change its consumer banking strategy to focus on providing customers with incentives to do more business with the bank instead of generating revenue through penalty fees such as overdraft charges.

The new legislation that caused Bank of America to take the $10.4 billion charge limits fees banks can collect when merchants accept debit cards.

Excluding the one-time charge, Bank of America earned $3.1 billion, or 27 cents per share, in the three months ending in September. That easily topped the 16 cents per share analysts polled by Thomson Reuters were expecting. Analysts don't typically include special charges in their estimates.

Holy mother of fuck! You mean government can pass sensible legislation that provides consumers with a bare minimum of protection and private companies will actually honor that restraint and step into line...and make billions down the road? I can't believe it...all those supply-siders are, let's say, exaggerating.

[Xipe Totec]

1. Now the bank cries all the way to you. nt

[jpljr77]

2. Something tells me they'll be just fine.

I just wanted to point out all the people that were conned by the banks' lobbyists' talking points now officially have nothing to whine about. BofA took their charge, changed their business model, and they'll be earning billions by the end of the current quarter. And consumers are now more protected. It's a classic win-win, and it was facilitated by smart regulation.

[Gman]

3. "In a dramatic shift, ...

the bank also said it will change its consumer banking strategy to focus on providing customers with incentives to do more business with the bank instead of generating revenue through penalty fees such as overdraft charges."


WOW!!!! You mean, make money the HONEST WAY???

[jpljr77]

5. Exactly. The smoke and mirror talking point of "oh, everyone is screwed...

...if reform passes" was total horse crap. And if you take a step back, you can see what the lobbyists were really fighting for: the right to charge almost random fees to middle class customers (since none of it applies to upper class customers). Let that sink in. How do those people sleep at night?

[RockaFowler]

4. I despise BofA

So they can rot in hell for all I care. I hope they lose even more money and have to go under. Just disgusted with this over-bloated company who does nothing for their customers excepts steals from them.