Bank of America posts third-quarter profit drop due to $1.2 billion Treasury fine
Bank of America's stock took a hit in pre-market trading today, slipping by 1.7% after U.S. regulators announced a significant $1.21 billion enforcement action against the bank on the eve of its Q3 earnings release. The penalties, which include a record Treasury enforcement package tied to anti-money laundering and sanctions violations, resulted in Bank of America failing to properly monitor trillions of dollars in transactions and reporting over $5 billion in suspicious activity.
The regulatory action has also impacted investor sentiment heading into the morning earnings call, with the bank already facing cautious expectations for Q3 earnings. The combination of the historic fine, its direct impact on Q3 reported earnings, and uncertainty surrounding the company's third-quarter performance has created a distinctly negative pre-market setup for Bank of America's stock.
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