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[BUSINESS] · United States · 3 sources

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Part of situation: Bank of America regulatory penalties and compliance failures (2 clusters)

Bank of America shares fall after $1.21 billion regulatory penalty

Bank of America regulatory penalty money laundering financial earnings compliance failure

Bank of America shares fell 8% following the imposition of a $1.21 billion regulatory penalty by US authorities. The fine, which includes the largest ever issued by the Office of the Comptroller of the Currency, addresses failures in money laundering controls and sanctions violations.

Regulators found that the bank’s transaction-monitoring system, Event Processor, utilized thresholds that were too high to effectively flag suspicious activity. This failure resulted in the bank being unable to identify approximately $4 billion in suspicious transactions. Additionally, investigators noted a significant backlog of nearly 200,000 cases in reviewing suspicious transactions.

The penalty coincided with a third-quarter earnings report that missed market expectations. The bank reported earnings of $6.9 billion, or $0.91 per share, down from $8.3 billion a year earlier. The results were impacted by a $1.2 billion non-tax-deductible charge related to the regulatory settlement. Furthermore, bond-trading revenue saw a 17% decline, and the bank's bond portfolio recorded over $100 billion in unrealized losses.

Entities

Bank of America · Brian Moynihan · Office of the Comptroller of the Currency · US Treasury Department

Claims

What the coverage asserts, and how many sources carry each claim.

  • [○ 1 SOURCE] Bank of America shares fell 8% following the regulatory penalty. www.newsmobile.in
  • [● 2 SOURCES] US regulators imposed $1.21 billion in penalties on Bank of America. www.newsmobile.in · www.seeitmarket.com
  • [○ 1 SOURCE] Bank of America reported third-quarter earnings of $6.9 billion, or $0.91 per share. www.seeitmarket.com
  • [○ 1 SOURCE] The penalty is the largest fine ever imposed by the Office of the Comptroller of the Currency. www.newsmobile.in
  • [○ 1 SOURCE] The bank's transaction-monitoring systems failed to identify approximately $4 billion in suspicious activity. www.newsmobile.in
  • [● 2 SOURCES] The bank reported a $1.2 billion non-tax-deductible charge related to the settlement. www.newsmobile.in · www.seeitmarket.com
  • [○ 1 SOURCE] Bond-trading revenue declined 17% to $2.55 billion. www.newsmobile.in

Sources

Bank of America Shares Plunge 8% After $1.21 Billion Regulatory Penalty [www.newsmobile.in]
Bank of America Stock Breaks Key Trend Line: Could Ending Diagonal Mark A Top? [www.seeitmarket.com]
Why Bank of America’s AML Failure Is a Wall Street Warning [gfmag.com]