Bank of America Takes Hit from $1.2 Billion Treasury Penalty in Q3 Earnings
Key Summary
Bank of America has been hit with a $1.2 billion Treasury penalty for violating anti-money-laundering and sanctions laws, resulting in a 17 cents per share reduction in third-quarter net income. The bank has already dedicated significant resources to fighting financial crime, and remediation efforts are well advanced. The penalty comes from three Treasury agencies, including FinCEN, OCC, and OFAC, and is the third-largest in Treasury history. The impact on Bank of America's Q3 earnings is expected to be significant, with investors already reacting to the news before the official numbers are released.
Background Context
Bank of America received a $1.2 billion bill from the US Treasury a day before its earnings report.Treasury Penalty Details
The Treasury hit the second-largest US bank with more than $1.21 billion in anti-money-laundering and sanctions penalties.The penalties total more than $1.21 billion and come from three Treasury agencies: $1.2 billion from FinCEN, $750 million from the OCC, and $11.66 million from OFAC.