Bank of America Drops 4% Premarket After $1.2 Billion Treasury Penalty Cuts Q3 Profit 17%
Updated
Updated · CNBC · Oct 14
Bank of America Drops 4% Premarket After $1.2 Billion Treasury Penalty Cuts Q3 Profit 17%
3 articles · Updated · CNBC · Oct 14
Summary
Bank of America shares fell 4% premarket after the bank said third-quarter profit dropped 17% on a $1.2 billion U.S. Treasury penalty tied to money-laundering violations.
Profit came in at 91 cents a share, down from what would have been $1.08 without the charge, while net income fell to $6.93 billion on $30.0 billion in revenue.
The selloff stood out in mixed premarket trading: BlackRock rose 3% after beating earnings estimates, while Morgan Stanley edged up 0.4% on an earnings and revenue beat.
The penalty adds fresh pressure on CEO Brian Moynihan's risk controls at the second-biggest U.S. bank, turning an earnings miss into a broader governance concern.