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Bank of America loses $1B due to proposed $5 debit card fee

A Bank of America branch.

January 24, 2012 12:00:00 AM PST
Bank of America's CEO Brian Moynihan revealed his company's proposed $5 debit card monthly fee has triggered a 20 percent jump in closed accounts.

The fee proposal was announced in late September. It was rescinded just a month later after intense public outcry.

Moynihan admits the announcement translated to a nearly $1 billion loss in earnings.

Consumer advocates say this story should serve as a warning to big banks planning to tack on debit card fees.