Bank of America posts $7.7B loss on special charge – What Does It Imply?

Bank of America Corp. said Tuesday it lost $7.65 billion during the third quarter due to a charge related to credit and debit card reform legislation passed over the summer.

The analysts widely expect SP 500 companies report accumulated Q3 GAAP earnings at about $17.  The amazing $7.65 billions lost by BAC eat up a whole dollar from the earning estimates.  From earning point of view, and based on my estimate, the fair value of Dow 30 plunges from 11900 to 11200 because of the lost, a 700 points drop.

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