Brian Moynihan, Chairman and CEO of Bank of America, speaks with David Rubenstein, President of the Economic Club of Washington, during an event at the Ritz-Carlton February 25, 2025 in Washington, DC.
Anna Moneymaker | Getty Images
Bank of America reported a sharp drop in third-quarter profit after being hit with a $1.2 billion penalty by the U.S. Treasury Department.
The tax, which reduced net income by 17 cents per share, will inevitably raise questions about whether CEO Brian Moynihan controls controls of the second-largest U.S. bank by assets.
Moynihan took the helm in 2010 and spent the early years of his tenure fixing mortgage lending abuses in the aftermath of the 2008 financial crisis. Now the question arises whether there are more risk management problems yet to be discovered.
The Treasury announcement adds some last-minute intrigue to what was otherwise a fairly routine week of banking results. Tuesday, JPMorgan Chase, Goldman Sachs, Citi Group And Wells Fargo reported mixed results, with JPMorgan missing EPS and revenue estimates for the first time in years.
Here’s what the company reported compared to what Wall Street analysts surveyed by LSEG expected:
- Earnings per share: 91 cents, perhaps not comparable to the expected $1.10
- Income: $30.0 billion, versus $30.69 billion expected
This story is developing. Please check again for updates.
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