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United States News
See other United States News Articles 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: 7582
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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