Bank of America posts $7.7B loss on special charge

[October 19, 2010]  NEW YORK (AP) -- Bank of America has lost $7.65 billion during the third quarter due to a one-time charge related to credit and debit card reform legislation passed over the summer.

Excluding the charge, Bank of America Corp. earned $3.1 billion, or 27 cents per share, easily topping analysts forecasts.

The bank also says it is creating a new banking strategy that moves away from penalty fees and toward providing customers with incentives to do more business with the bank.

Outside of the charge, Bank of America has benefited from a steep drop in losses tied to defaulting loans.

Analysts had forecast Bank of America would earn 16 cents per share. Forecasts don't typically include one-time charges.

[Associated Press]

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