Bank of America Takes $1.2 Billion Charge After U.S. AML Fines

Bank of America Corp (BAC) will record a $1.2 billion non-tax-deductible charge in the third quarter following roughly $1.21 billion in U.S. regulatory penalties. The fines stem from anti-money laundering and sanctions monitoring failures, including unaddressed warning signs and missing suspicious activity reports on transactions exceeding $5 billion. The charge is expected to reduce third-quarter earnings per share by approximately $0.17. Following the disclosure, shares fell 1.14% to $53.96.

Despite the regulatory penalty, performance across key operating segments remains active. Net interest income is expected to grow about 10% year-over-year from deposit and lending activity, while trading revenue is projected to rise roughly 12% year-over-year despite trailing the prior quarter. The bank also placed fourth globally in investment-banking fees for 2025–26 and led AI-related capital markets, acting as bookrunner for roughly $818 billion in issuance. However, the company faces advisory team turnover following senior executive departures and staff disputes over deferred pay.

Investors will monitor the bank's progress on regulator-ordered remediation, which management indicates is underway with dedicated personnel and expenses included in current accounts. Key factors to watch include capital markets momentum, compensation stability, and the rollout of internal artificial intelligence infrastructure like the AskGPS Intelligence Hub.