Sen. Elizabeth Warren (D-Mass.) called Bank of America Corp.’s (NYSE:BAC) $1.21 billion anti-money laundering penalty a “slap on the wrist” and urged the Justice Department on Thursday to investigate the lender and, if the facts warrant, prosecute its executives.
Warren Demands Criminal Accountability From Bank
“I ask the Department of Justice to conduct a full criminal investigation and, if the facts warrant, prosecute the bank and its executives for their failures to follow the law,” Warren wrote in an October 29 letter to Attorney General Todd Blanche.
The Senate Banking Committee’s ranking Democrat asked Blanche to explain by November 12 whether prosecutors had investigated the bank and whether DOJ would coordinate with financial regulators. Warren previously criticized the fine, contrasting it with the lender’s approximately $30 billion annual profit and demanding restrictions on dividends and stock buybacks.
Treasury Details Billions In Suspicious Transactions
The Treasury Department imposed more than $1.21 billion in penalties on October 13 after finding that the bank failed to promptly report over $5 billion in suspicious transactions. More than $1 billion involved priority illicit-finance risks, including Chinese money laundering networks and activity linked to the southwest border.
The enforcement package includes a $1.2 billion FinCEN assessment, a $750 million OCC penalty credited against that assessment, and an $11.6 million sanctions settlement. Regulators cited persistent compliance deficiencies despite a 2024 enforcement order.
Treasury Secretary Scott Bessent declared that “even the biggest financial institutions are not above the law.” Warren countered: “Civil fines have become the cost of doing business on Wall Street.”
Bank Details Remediation And Financial Impact
Bank of America said it had made substantial progress addressing compliance failures. Reuters reported that CEO Brian Moynihan reassigned 1,000 employees to remediation efforts as regulators demanded independent reviews.
The penalty reduced third-quarter earnings by approximately 17 cents per share. Profit fell to $6.9 billion from $8.3 billion, while shares plunged following the results.
The Justice Department did not immediately respond to Benzinga’s request for comment.
Price Action: Bank of America shares were trading 0.33% higher at $51.31 in after-hours trading on Thursday, according to Benzinga Pro data.
Photo courtesy: Sheila Fitzgerald / Shutterstock.com
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