Wall Street Isn't Convinced Bank of America's Problems Are Behind It -- WSJ

By Gina Heeb

Bank of America's very bad week got even worse today, with its stock down 8% and on pace for its worst post-earnings decline since 2010. The decline came after it posted disappointing third-quarter results following a whopping regulatory fine.

The Treasury Department said yesterday it was fining the bank $1.2 billion for failures in its anti-money laundering and other protocols. Bank of America said the fine hit its results by 17 cents per share in the third quarter.

But during a call this morning after it reported results, analysts asked whether the costs of getting its procedures into compliance were really in the past.

JPMorgan analyst Vivek Juneja called it a surprise after the bank earlier said the issue was already factored into the run rate."Yet clearly you've had a huge charge this morning," he said. "Obviously it's a reputational and confidence issue."

Bank of America executives said the expenses have been factored in and that its work has been underway with regulators for a number of quarters. The bank said that it had invested billions of dollars to combat financial crime.

The bank's revenue and net income also came in short of Wall Street expectations, even after excluding the regulatory fine.

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(END) Dow Jones Newswires

October 14, 2026 10:23 ET (14:23 GMT)