In a Form 8-K filing with the Securities and Exchange Commission, the Charlotte, N.C.-based bank said it anticipates its Global Card Services business will record a non-deductible, goodwill-impairment charge of between $7 billion and $10 billion in the third quarter to reflect the impact of Durbin Amendment in the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law by President Obama on Wednesday.
The Durbin Amendment calls for changes in the interchange fees charged for debit card transactions, and it's slated to go into effect in one year. Bank of America has said previously it expects see a material hit to future revenue from its debit card business due to the changes.
In the 8-K, Bank of America said it plans to take "a number of actions that would mitigate some of the impact when the laws and regulations become effective," but it didn't provide details about what those actions might be.The stock closed Thursday at $13.66, up 30 cents. -- Written by Michael Baron in New York.
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