Try as they may, Bank of America just can't catch a break.
In the latest BofA bad news, it appears that the bank has the most to lose from new fee rules aimed at limiting charges to consumers, according to a research note from Credit Suisse cited by Forbes.
A new rule that requires banks get consent before charging customers overdraft fees will cost BofA $3.3 billion per year, compared to the $1.4 billion that Wells Fargo will lose per year and the $1.077 billion JPMorgan Chase stands to lose, the research note finds.
The research note comes on the heels of news that BofA's shares fell below $5 for the first time in years. The slump caps a year of fails for the company including a proposed, but ultimately scrapped, $5 debit card fee that drew criticisms from ordinary consumers, lawmakers and even President Obama.
After BofA initially announced the fee, the company's CEO Brian Moynihan defended it, saying that the bank "has a right to make a profit." Other bank industry officials expressed similar sentiments including Frank Keating, the president of the American Banker Association, who said that financial reform rules forced banks' hands in passing off charges to customers.
BofA has already lost millions due to some of its fee practices. The bank paid $410 million in May to settle a lawsuit with consumers who claimed the bank charged them excessive overdraft fees. Wells Fargo and Citibank have faced similar suits.
Though the research note finds that BofA is slated to lose more than most from the new overdraft rules, banks are still on track to net $16 billion in overdraft fees this year, Businessweek reported in October. That's down 16 percent from their 2009 peak, thanks in large part to the new regulations.
Still, customers are getting hit hard by fees; the average debit card fee remains $35, the same as it was last year, according to the Consumer Federation of America.
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