Bank of America Stock Falls as CEO Warns on Lower Investment Banking Fees
Bank of America (BAC) stock dropped nearly 5% after its CEO, Brian Moynihan, issued a weaker-than-expected forecast for third-quarter investment banking fees. He projected $1.6 billion to $1.8 billion in fees, down about 10%-20% from the same period last year as overall market activity declined by roughly 28%. The broader financial services sector also fell on Monday, with Goldman Sachs (GS), Morgan Stanley (MS), JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WFC) all posting declines. In contrast, Citigroup reported a more optimistic outlook for market revenue growth in the quarter. Moynihan attributed part of the slowdown to challenges in executing deals despite a strong pipeline but noted that Bank of America's Main Street operations remain robust with growing loans, deposits, and net interest income aligned with expectations. He also expressed confidence in the U.S. economy’s resilience even if the Federal Reserve raises rates this week. The decline follows a broader pullback in trading activity after volatility in AI-related stocks earlier in 2026.
Tickers: $BAC $BCS $GS $JPM $MS $WFC
Topics: investment banking revenue forecast stock performance trading fees