Bank of America wrote off $ 20 billion because of credit cards

Bank of America, the largest U.S. bank by assets, has revised its financial results for the last eight quarters because of the results of its subsidiary organization dedicated to credit cards - FIA Card Services. As stated in a press release of the bank, now the reports are taken into account write-offs of assets to 20.3 billion dollars. The press release also said that the losses associated with deterioration in credit quality in 2009, as well as the introduction of the so-called Credit Card Act, Act of 2009 which, inter alia, prohibited financial institutions to charge clients of the additional fees. The bank stressed that it was non-cash write-offs and will not affect the company's accounts for 2009 and 2010 as part of the profits, taxes or dividends. However, as noted by The Wall Street Journal, this amount still shows just how significant were losses on credit-card bank. Earlier, Bank of America believed that the cancellation by FIA Card Services will amount to just over $ 10 billion. However, according to the WSJ, and this estimate is never voiced publicly, because the bank did not include the FIA ??in their public statements. Bloomberg, in turn, said that the card unit of Bank of America was a loss of 6.6 billion dollars by the end of 2010 and 5.3 billion up to 2009. Source: lenta.ru