Bank of America Profit Falls After $1.2 Billion Treasury Penalty
publishers 16articles 17first reported 14 Oct, 02:05 UTCdeveloping since 14 Oct · 7 editions
Bank of America reported a 17% decline in third-quarter profit after the U.S. Treasury Department imposed a $1.2 billion penalty over failures in the bank’s anti-money-laundering and sanctions controls.
Net income fell to about $6.9 billion, or 91 cents per share, from $8.3 billion a year earlier. The penalty reduced earnings by 17 cents per share; excluding it, earnings would have been $1.08 per share. Revenue rose about 3% to $30.12 billion but fell short of the $30.69 billion expected by analysts surveyed by LSEG.
The Treasury said Bank of America failed to properly report more than $5 billion in suspicious transactions and described the violations as “egregious and continued.” Regulators also issued a consent order requiring the bank to work with a third party to identify and report previously undetected suspicious transactions.
Bank of America said it had already committed substantial personnel and resources to remediation. Chief Financial Officer Alastair Borthwick said thousands of employees were working on measures connected to a consent order first imposed in 2024 and that the bank did not expect substantial additional hiring.
Trading results also weighed on the quarter. Fixed-income trading revenue fell 17% to $2.55 billion, while equities trading revenue rose 10% to $2.51 billion; both missed analysts’ estimates. Bank of America shares declined following the results.
HOW THIS STORY WAS MADE
Written from 7 articles, 2 with the publisher's own text; 6 independent newsrooms once syndicated copies count as one; this version written 15 h after the record first saw the story; the editor kept it as written.
- Publishers
- 16
- Source articles
- 17
- Given to the writer
- 7, 2 with the article's own text
- Independent newsrooms
- 6
- This version written
- 15 h after the record first saw the story
- Second model (editor)
- kept as written
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
The second model checked the writer's draft against the same sources and published it as written.
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