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U.S. Treasury Slaps $1.2B Penalty on Bank of America

By Drooid · Oct 14, 2026, 2:06 PM UTC · How we work

Summary

Bank of America Penalized

U.S. Treasury imposed a $1.2 billion penalty on Bank of America, driving a 17% profit decline.
Bank of America reported third-quarter net income (total profit) of $6.93 billion ($0.91 per share) after the penalty.
Regulators said the bank failed to report over $5 billion in suspicious transactions, including Chinese money-laundering.
Bank of America’s stock fell about 2% after hours and over 4% pre-market.

Summary

Short-sale Volume Rises

Short-sale volume ratio rose from 0.156 on Oct 8 to 0.332 on Oct 13, FINRA data shows.
Trading volume on the penalty day was about 60 % of the stock’s 20-day average.
The 10-year Treasury yield was 5.24 % and the 2-year 4.80 % on Oct 9, narrowing the spread to 0.42 percentage points.
Bank of America reported second-quarter net interest income (interest earnings) of $16.00 billion, up 9 %, and a common equity Tier 1 ratio of 11.2 %.

History

Historical Context

Bank of America’s 2024 $1.2 billion AML fine follows a decade of enforcement that began with its 2008 acquisition of Countrywide and Merrill Lynch, which exposed the bank to risky mortgage-backed securities. In August 2014 the Justice Department secured a $16.65 billion settlement, and in February 2012 the five largest servicers signed the $26 billion National Mortgage Settlement, prompting tighter oversight that today drives Treasury penalties.

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Bank of America Penalized

U.S. Treasury imposed a $1.2 billion penalty on Bank of America, driving a 17% profit decline.
Bank of America reported third-quarter net income (total profit) of $6.93 billion ($0.91 per share) after the penalty.
Regulators said the bank failed to report over $5 billion in suspicious transactions, including Chinese money-laundering.
Bank of America’s stock fell about 2% after hours and over 4% pre-market.

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