Bank of America Learns from Debit Fee Misstep

Bank of America's failed attempt to charge customers $5 monthly for using their debit cards has taught the bank valuable lessons, according to CEO Brian Moynihan. Moynihan spoke at the company's annual financial services conference, also addressing ongoing discussions with state attorneys general over foreclosure-related issues. The bank's negotiations with attorneys general from all 50 states are ongoing, with the Obama Administration pushing for a settlement. Meanwhile, Moynihan expressed optimism about the US housing market, calling it "bouncing along a bottom," with significant investment interest.

Key Takeaways:

• Bank of America's failed debit fee attempt has led to valuable lessons for the bank, with CEO Brian Moynihan commenting on the experience.
• Discussions with state attorneys general over foreclosure-related issues remain ongoing, with the Obama Administration pushing for a settlement.
• Bank of America and other institutions are negotiating with attorneys general from all 50 states to resolve liability for foreclosure problems.
• CEO Moynihan sees a low probability of the economy slipping backward.
• The bank plans to cut its debt, reducing long-term obligations by $70 billion to $120 billion by the end of 2013.

Statistics:

• Bank of America plans to reduce debt by $70 billion to $120 billion by the end of 2013.
• The US housing market is "bouncing along a bottom" according to CEO Moynihan.
• Bank of America's financial services conference comments by CEO Moynihan were reported by Bloomberg News.
• The bank is engaged in ongoing negotiations with attorneys general from all 50 states over foreclosure-related issues.

Sources:

• Bloomberg News
• The Wall Street Journal
• TheStreet.com article by Dan Freed
• FBR Capital Markets analyst report
• CEO Brian Moynihan's comments at Bank of America's annual financial services conference.