Rival Banks
Yesterday, Citigroup Inc., the No. 3 ranked U.S. lender at midyear, said net income jumped 74 percent to $3.77 billion including a $1.9 billion accounting gain, known as a credit- valuation adjustment. Wells Fargo & Co., the No. 4 lender, said profit rose 22 percent to a record $4.06 billion. Last week, JPMorgan said net income fell 4 percent to $4.26 billion.
Bank of America's third-quarter 2010 loss was fueled by a $10.4 billion writedown of its credit-card division after new U.S. regulations reduced its value.
To help recoup the lost revenue, the firm has added fee- based checking and said some debit-card users would be charged $5 per month. San Francisco-based Wells Fargo is testing a $3 monthly fee, and similar charges have been imposed by Regions Financial Corp. and SunTrust Banks Inc.
Bank of America's plan sparked objections from critics including President Barack Obama. Five House Democrats asked Attorney General Eric Holder on Oct. 13 to investigate whether banks and trade groups colluded on decisions to impose new fees.