Bank of America today reported a loss of $7.3 billion, as a result of changes to bank card transaction fees.
The company took on a goodwill impairment charge of $10.4 billion as a result of changes to card rules, wiping out what would have been a $3.1 billion profit.
Legislation was recently signed by US President Barack Obama which includes new rules on the amount banks can charge firms to swipe their cards and pay for goods.
'The charge results from the limits to be placed on debit interchange fees under the financial reform legislation enacted in July 2010, which will reduce future revenues in the global card services business,' the firm said.
'This change moves away from a dependence on penalty fees, which the industry had adopted over the years, and provides the customer with a better banking experience,' the bank added.
But the company's chief executive was upbeat, as other business areas continued to recover.
'Our results this quarter demonstrate continued traction with each customer group - consumers, businesses, and institutional investors,' said CEO Brian Moynihan.
'Our strategy is to leave nothing to chance in our goal of doing everything we can for each of our customers,' he added. The earnings compare to a $1 billion loss the same time last year.
Bank of America was among the hardest hit during the credit crisis. It received $45 billion in bailout funds from the federal government, and repaid the money last year.
The firm has recently been embroiled in a scandal over its apparent failure to process US repossessions correctly. The bank had introduced a nationwide repossession freeze, but said yesterday that proceedings would resume in 23 states.
