Bank of America's dark cloud: Wall Street reform

[ProSense]

Bank of America's dark cloud: Wall Street reform

By David Ellis, staff writer



NEW YORK (CNNMoney.com) -- Bank of America's fears about Wall Street reform are giving the whole banking industry a case of the jitters.

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But Bank of America (BAC, Fortune 500) broke ranks on Friday, detailing the impact of several provisions, including the so-called Durbin amendment, named after sponsor Sen. Richard Durbin, D-Ill., which will limit the fees banks collect from debit card swipes.

Bank of America executives said the new rule would reduce fees earned from debit cards anywhere between 60% and 80% starting in the second half of 2011. This year, the company said it expects to produce $2.9 billion in revenue from that business.

Since Friday, analysts have been recalculating the cost to banks affected by the new rule.

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[lunatica]

1. It's always about profit as if that's the sole reason for doing any business

They have their eye on that bottom line at the expense of everything else. Under the mattress banking is looking better and better. At least you don't lose money on all those unnecessary extra fees just to get to your money.

[napi21]

2. That's a HUGH NUMBER! I just checked their income statement

and their net profit for the 1st qtr 2010 was $3.8 billion. I realize the $2.9 billion is annual, but even if you multiply the $3.8bl by4, that's $15.2 bl & $29.9 is a BUG piece considering there's next to zero expense associated with collecting it.

I realize they are a very large bank, but I never imagined income from debit card fees would be THAT MUCH!