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Title: Banking Reform's first victim: Stock Market Crashing..why?
Source: Marketwatch
URL Source: [None]
Published: Jul 16, 2010
Author: NA
Post Date: 2010-07-16 12:21:04 by Nebuchadnezzar
Keywords: None
Views: 7625
Comments: 40

SAN FRANCISCO (MarketWatch) -- Bank of America Corp. warned Friday of a multi-billion dollar hit from the latest financial regulation, pressuring shares of the banking giant. Reforms that passed Congress Thursday include potential limits on debit card interchange fees recieved or charged by issuers like Bank of America. The company estimated this could knock as much as $1.8 billion to $2.3 billion off annual revenue generated by its Global Card Services business, starting in the third quarter of 2011. This part of Bank of America's business carries $22 billion of goodwill on its books, partly from the $35 billion acquisition of card giant MBNA in 2005. Based on the estimated revenue hit from interchange fee regulation, Bank of America said this goodwill may be impaired by $7 billion to $10 billion in the third quarter of 2010. Bank of America shares fell 7.7% to $14.21 in midday action on Friday.

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Begin Trace Mode for Comment # 25.

#2. To: Nebuchadnezzar (#0) (Edited)

ATM fees are illegal in Canada. Look at the soundness of their banking system compared to ours.

war  posted on  2010-07-16   12:27:16 ET  Reply   Untrace   Trace   Private Reply  


#8. To: war (#2)

ATM fees are illegal in Canada. Look at the soundness of their banking system compared to ours.

Has nothing to do with ATM Fees.

I would say 2 things:

1) Much fewer banking brands meaning much less competition.

2) I bet they don't have "community organizers" forcing them to give NINJA loans to every Jamal, Shaquiqua, Pedro, and Maria who walks in the door.

no gnu taxes  posted on  2010-07-16   12:54:13 ET  Reply   Untrace   Trace   Private Reply  


#10. To: no gnu taxes (#8)

Has nothing to do with ATM Fees.

Read the article puddin'. That's EXACTLY what they are bitching about. Fleecing people for accessing their money.

war  posted on  2010-07-16   12:57:06 ET  Reply   Untrace   Trace   Private Reply  


#13. To: war (#10)

I was referencing your mention of the Canadian system, not BoA's complaint about fees. Screw the banks, anyway. I use a Credit Union, and I'll never go back to a bank.

no gnu taxes  posted on  2010-07-16   13:04:02 ET  Reply   Untrace   Trace   Private Reply  


#15. To: no gnu taxes (#13) (Edited)

I was referencing your mention of the Canadian system.

Yea so? BoA is bitching they can't make money without fleecing their ATM users. Canadian banks are heavily regulated and they make money hand over fist.

war  posted on  2010-07-16   13:16:30 ET  Reply   Untrace   Trace   Private Reply  


#18. To: war (#15)

debit card interchange fees

I don't think that's an ATM fee anyway. That's the charge the merchant has to pay when you use your card to buy items at their business.

no gnu taxes  posted on  2010-07-16   13:22:38 ET  Reply   Untrace   Trace   Private Reply  


#20. To: no gnu taxes (#18)

When I bought my cap for my pickup I negotiated a discount for cash. When I pulled out my checkbook the clown said I don't see any cash. What a fool, my discount turned into his charge for my Discover card purchase.

What kind of clown wants cash laying around, the check has to be good or the minimum fee was $25 at the time, payable to the business that got stiffed on top of the banks outrageous charges.

reaganisright  posted on  2010-07-16   13:34:24 ET  Reply   Untrace   Trace   Private Reply  


#22. To: reaganisright (#20)

When I bought my cap for my pickup I negotiated a discount for cash. When I pulled out my checkbook the clown said I don't see any cash. What a fool, my discount turned into his charge for my Discover card purchase.

Odd. I recently bought a car and paid with a check, no problem.

Maybe it was your credit rating.

lucysmom  posted on  2010-07-16   13:44:15 ET  Reply   Untrace   Trace   Private Reply  


#23. To: lucysmom (#22)

You don't see the bait and switch of negotiating cash and then whipping out your checkbook?

war  posted on  2010-07-16   13:49:07 ET  Reply   Untrace   Trace   Private Reply  


#24. To: war (#23)

You don't see the bait and switch of negotiating cash and then whipping out your checkbook?

No, I didn't catch that.

lucysmom  posted on  2010-07-16   13:52:42 ET  Reply   Untrace   Trace   Private Reply  


#25. To: lucysmom (#24)

"When I bought my cap for my pickup I negotiated a discount for cash. When I pulled out my checkbook the clown said I don't see any cash..."

war  posted on  2010-07-16   13:54:02 ET  Reply   Untrace   Trace   Private Reply  


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