Bank of America Stock Falls After CEO Warns of Slowing Investment Banking Revenue
Bank of America's stock dropped nearly 5% following a warning from CEO Brian Moynihan at a financial conference on September 14, 2026. He indicated that the bank’s Wall Street businesses are slowing after strong first-half performance and guided for third-quarter investment banking fees between $1.6 billion to $1.8 billion—below analysts' expectations of around $2 billion. The comments caused a broader decline in financial stocks, with the S&P 500 banking index falling by nearly 3% on the same day. Moynihan noted that market-wide investment banking activity is down about 10%, and Bank of America could see an even steeper drop due to its smaller share of high-activity deal areas. The bank had previously benefited from a surge in second-quarter fees, which rose by 50% year-over-year. However, the third quarter appears weaker as broader market conditions slow. The CEO also highlighted concerns about higher interest rates potentially dampening financing demand and slowing deal activity further. Citigroup’s CFO echoed similar caution later that day, signaling a potential sector-wide slowdown.
Tickers: $BAC
Topics: Bank of America bank stock decline CEO guidance investment banking fees