Bank of America Profit Tumbles on $1.2B Regulatory Fine, Trading Weakness

Bank of America $BAC reported a 17% drop in third-quarter profit, pressured by a $1.2 billion fine for anti-money laundering compliance failures. Investment banking and trading revenues both declined, missing consensus expectations as deal flow weakened.

The penalty underscores heightened regulatory scrutiny of major U.S. lenders. BofA's earnings also disappointed on revenue, with net interest margin compression and softer capital markets activity weighting on results across multiple business lines.

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