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BofA hit hardest by new regulations

Research released by Credit Suisse analyst Moshe Orenbuch on Monday showed that Bank of America has taken the brunt of new regulations targeting the financial industry.

Orenbuch estimated that Regulation E, established in July 2010, which requires banks to get customer consent before collecting overdraft fees, will costs Bank of America $3.3 billion annually, according to CNBC.com.

In comparison, Regulation E will cost Wells Fargo $1.4 billion annually and JPMorgan Chase $1.077 billion annually.

Both Wells Fargo and JPMorgan Chase allow customers to choose whether or not to receive overdraft fees, while Bank of America does not.

The Durbin Amendment also hit Bank of America’s revenue harder than other banks because it is the largest consumer deposit bank in the nation, according to CNBC.com.

In October, the bank announced it would begin charging its debit card customers a $5 usage fee in order to collect lost revenue. It reversed its proposal in November after widespread public condemnation.

Senate Majority Whip Dick Durbin (D-Ill.) has made Bank of America a prime target in his battle against Wall Street and large banks.

"It seems that old habits die hard for Bank of America,” Durbin said, according to FoxNews.com. “After years of raking in excess profits off an unfair and anti-competitive interchange system, Bank of America is trying to find new ways to pad their profits by sticking it to its customers.”
 

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