Bank of America Faces $1.2 Billion Penalty Amid Mixed Earnings Report
- Bank of America reports third-quarter earnings with a $1.2 billion penalty impacting net income.
- CEO Brian Moynihan has faced scrutiny over risk management since taking charge in 2010.
- Industry peers JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo released mixed earnings results.
Bank of America reported its third-quarter earnings before the market opened on Wednesday, following a significant $1.2 billion penalty from the U.S. Treasury Department. This penalty directly reduced net income by 17 cents per share and raises concerns regarding the risk controls under CEO Brian Moynihan’s leadership.
Moynihan, who has led the bank since 2010, previously focused on addressing mortgage-related abuses stemming from the 2008 financial crisis. The recent Treasury Department action introduces new doubts about the bank’s current risk management practices.
This development comes amid a week of bank earnings reports that otherwise seemed routine. On Tuesday, major players, including JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo, revealed mixed results, with JPMorgan notably missing earnings per share (EPS) and revenue estimates for the first time in several years.
In its earnings report, Bank of America disclosed the following compared to Wall Street analysts’ expectations, as surveyed by LSEG:
- Earnings per share: 91 cents, below the expected $1.10
- Revenue: $30.0 billion, compared to the anticipated $30.69 billion
This story is developing. Please check back for updates.
News Courtesy of CNBC
