- Bank of America's stock and fixed-income traders missed Q3 estimates, with bond-trading revenue down 17% and equity trading down 10%.
- The U.S. Treasury Department fined Bank of America $1.2 billion for failing to report more than $5bn in suspicious activity, the third-largest penalty in the department's history.
- The penalty cut Q3 net income by 17 cents a share.
- Street estimates for Q3 were EPS of $1.10 per LSEG and revenue of $30.69 billion, with fixed-income trading of $3 billion and equities trading of $2.8 billion.
- CNBC notes that the penalty raises questions about CEO Brian Moynihan's control of controls at the second-biggest U.S. bank by assets.
Quotes
“a penalty the bank said will hurt third-quarter earnings”