Bank of America shares drop 7% after third-quarter revenue miss and regulatory penalty

Bank of America shares fell Wednesday following third-quarter results that missed profit estimates. CNBC World reports the decline was driven by weaker-than-expected trading revenue and the impact of a $1.2 billion Treasury fine. The Business Times - Companies & Markets states the penalty is tied to the bank's failure to detect potential money-laundering activity and its failure to report over US$5 billion in suspicious activity to the US government.

According to The Business Times - Companies & Markets, sales and trading revenue dropped 5 percent to US$5.1 billion during the quarter, impacted by weakness in fixed income, currencies, and commodities. Additionally, investment banking fees fell 11 percent to US$1.8 billion. Shares of the lender fell 4.2 percent in premarket trading.

Brief written by urgent.news from CNBC World, The Business Times - Companies & Markets — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.