Bank of America Shares Fall 8% After US Treasury Penalties
Bank of America shares fell 8% on Wednesday. CNBC linked the drop to weaker-than-expected third-quarter trading revenue.
The US Treasury imposed three penalties on the bank. The penalties total more than $1.21 billion.
The US said the bank violated money laundering and sanctions laws. PBS NewsHour said the penalties were the third-largest in Treasury history.
Bank of America is the second-biggest bank in the United States. CNBC also pointed to the impact of the Treasury penalties.
MarketWatch said investors were disappointed by the penalties. The earnings report also showed a profit miss and was downbeat.
Axios reported the penalties followed years of failures to flag suspicious transactions. Axios said the bank had weak controls against money laundering.
The bank has been under a regulatory order since December 2024. That order told it to fix money laundering problems.
Key Terms 3
- money laundering Hiding money from illegal sources to make it look legitimate.
- sanctions Official limits on trade or money dealings with certain countries or people.
- regulatory order A formal instruction from a government agency to correct problems.