Bank of America Restates Credit Card Unit Results

Bank of America has revised the results of its international credit card business for the last two years, adding a $20.3 billion non-cash goodwill writedown in 2009 while reversing a $10.4 billion charge made last year.

Bank of America
Bank of America

The changes filed with regulators this month did not affect BofA’s consolidated results or balance sheet for either year, the bank said in a statement on Monday.

BofA adjusted the financial reports for its FIA Card Services unit to account for weakening credit quality in early 2009, and the toll the Card Act legislation would take on the credit-card business that year.

It also reversed a $10.4 billion charge to its third-quarter 2010 consolidated results which reflected new debit-card fee restrictions imposed by the Durbin Amendment, named for the US senator who included the provision in last year’s sweeping financial services reform legislation.

Under generally accepted accounting principles, or GAAP, BofA was not required to write down the value of its credit card businesses’ goodwill in 2009 or in the first half of 2010.

The bank said it had identified the adjustments and reported them to its regulators.