* New Fed-backed rules to hit fee revenue in H2
* Sees Q3 fee revenue down by $225 mln
* Sees Q4 fee revenue down by $275 mln
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Aug 10 (Reuters) - Wells Fargo & Co (WFC.N) said new U.S. financial regulation to limit overdraft fees would reduce its fee revenue by about $500 million in the second half of this year.
The Federal Reserve in November moved to ban overdraft fees on automated-teller-machines and debit-card transactions unless consumers had actively selected an overdraft protection service.
On July 21, the Dodd-Frank Wall Street Reform and Consumer Protection Act became law. The Dodd-Frank Act reshapes and restructures the supervision and regulation of the financial services industry.
“We currently estimate that the combination of these changes will reduce our 2010 fee revenue by approximately $225 million (after tax) in third quarter 2010 and $275 million in fourth quarter 2010,” the bank said in a filing with the U.S. Securities and Exchange Commission on Monday.
The bank said that although the Dodd-Frank Act became generally effective in July, many of its provisions have extended implementation periods and delayed effective dates and will require extensive rulemaking by regulatory authorities.
“The ultimate impact of the Dodd-Frank Act cannot be determined,” the bank said. (Reporting by Sakthi Prasad in Bangalore; editing by Simon Jessop)