Bank of America CEO Brian Moynihan told CNBC the bank brought on 1,000 outside contractors in the second quarter to patch software vulnerabilities exposed by advanced AI models, including Anthropic's Mythos. Those contractors remain in place alongside the bank's existing 3,000-person team, and Moynihan said the bank spent over $200 million in the third quarter on remediation and related anti-money-laundering compliance work.
The U.S. Treasury has fined Bank of America more than $1.2 billion for violating anti-money-laundering and sanctions laws, including failures to report financial crime. The penalty ranks as the Treasury's third-largest ever, behind fines levied against Binance and TD Bank. Bank of America's stock fell following the announcement.
Bank of America's third-quarter profit dropped sharply, which the bank attributed to a $1.2 billion penalty. Shares fell more than 4% in premarket trading following the earnings report. The disclosure came the same morning as new consumer price index data, the last inflation reading before the midterm elections.
A San Diego pizzeria has filed a proposed class action against Visa, Mastercard, Bank of America, Capital One, Chase, Citibank and Wells Fargo, alleging a long-running conspiracy to fix interchange fees charged to merchants on credit card transactions. The 134-page complaint claims the companies impose rules forcing merchants to accept all cards of a given network regardless of cost and bars steering customers toward cheaper payment options, calling the fees 'monopoly rents.' The suit comes despite a prior class action settlement exceeding $5 billion over similar allegations.
Bank of America analyst Wamsi Mohan issued a note saying Meta's Muse AI agent, now nearing two weeks atop the US App Store, shows how third-party AI agents could bypass Apple's ecosystem for product discovery, referrals and transactions. Mohan kept a 'Buy' rating and $370 price target on Apple shares, which fell more than 2.5% on the day of the note. Muse has reportedly reached over 3.4 million downloads and integrates commerce partners like Shopify, Shop Pay, Expedia and PayPal.
Bank of America Institute analyzed credit card transactions through August 2026 and found overall hobby spending up 7.9% year over year, growing faster than transaction volume. Older millennials spend nearly $220 per person monthly on hobbies, more than Gen X and Baby Boomers (both around $200), while Gen Z spends about $100 and younger millennials just over $140.
Brent crude climbed past the $100-per-barrel mark amid escalating US-Canada trade tensions, while Apple prepared to hold its annual product event, expected to unveil its first foldable iPhone. The event also marks the public debut of John Ternus, who recently took over as Apple's CEO, with analysts watching for potential price increases across the product lineup.
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