Key facts
- Bank of America's stock experienced its worst trading day in 18 months.
- A $1.2 billion regulatory penalty was imposed on Bank of America for money laundering and sanctions violations.
- Bond trading revenue fell 17%, while stock trading revenue rose 10%.
- Total revenue of nearly $30 billion missed analysts' expectations.
Bank of America's stock fell nearly 9% on Wednesday, marking its worst trading day in 18 months, following a disappointing third-quarter earnings report and a significant regulatory penalty. The bank's bond trading revenue declined 17%, offsetting a 10% increase in stock trading revenue, and total revenue of almost $30 billion fell short of analysts' estimates. The $1.2 billion penalty from the Treasury Department was for failing to report billions in suspicious transactions related to money laundering and sanctions violations. Treasury Secretary Scott Bessent stated that the action sends a message that even large financial institutions are not above the law. While other large banks reported solid results, Bank of America's performance was a notable weak spot.