BofA Says Consent Order Work Largely Done, Shares Sink 8%
BAC is trading near its 52-week low of $46.115 (8.4% above the low).
Summary
Bank of America says it has completed much of the work required under the AML consent order, repositioning 1,000 staff and making substantial technology investments. CEO Brian Moynihan says remediation spending is already in the run rate, so no new expense shock. CFO Alastair Borthwick confirms no asset cap and no crowding out of other business. Shares opened 8% lower, hitting the lowest since May, as the market digests the $1.21B penalty and the OCC's separate report on unfair denial of banking services. The $1.2B fine has cost shareholders 25 times that amount. Citigroup is mentioned as a peer also working through regulatory demands.
At the time of this announcement, BAC was trading at $49.99 on NYSE in the Finance sector, with a market capitalization of approximately $349.6B. The 52-week trading range was $46.12 to $65.23. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.