Bank of America stated on Monday that it experienced greater the write-down on its FIA Card providers device to reflect sector regulation and deteriorating credit history quality.
The write-down, related to some $20.3 billion goodwill impairment at FIA covering 2009 and 2010, does not impact the bank's consolidated economic final results or its cash reserves, the commercial lender stated in a very statement. The FIA device is component of worldwide Card Services, its global charge card division.
Bank of America cited the adverse impact through the charge card Accountability, duty and Disclosure Act, which took impact in two stages more than the final two many years and aims to safeguard buyers towards unfair charge card fees. The act, passed by Congress in may perhaps 2009, limits how banking institutions can increase curiosity prices on exceptional balances and addresses past due payment expenses as properly as other fees.
The new, noncash write-down at commercial lender of America reverses a $10.4 billion impairment to FIA Card providers reported final yr like a outcome of how the Dodd-Frank economic overhaul law impacted its debit card business, producing for only a $9.9 billion boost in its general impairment.
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