Tuesday, February 22, 2011

Bank of America (BAC) Amends Goodwill Adjustment for FIA Card Services Unit

Bank of America Corp., (NYSE:BAC) the largest U.S. bank, said it amended previously filed call reports for 2009 and 2010 for its FIA Card Services unit to reflect a $20.3 billion goodwill adjustment.

The move does not affect the banking giant's current or previously reported consolidated financial results and capital positions, it said in a statement.

The restatement involves a non-cash, non-tax deductible charge related to the goodwill impairment at FIA, which has now been recorded for the unit for the first half of 2009.

The goodwill writedown was caused by deteriorating credit quality and the adverse impact from the CARD Act on Bank of America's credit card operations in 2009, the lender said.

Included in the amended call reports is the reversal of a $10.4 billion writedown of goodwill at FIA during 2010.

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