BofA CEO’s Trading Revenue Warning Sends Bank Stocks Falling
Bank of America shares dropped 5 percent after Chief Executive Officer Brian Moynihan warned that third-quarter investment banking fees could fall 10 to 20 percent year-over-year. The bank projects investment banking fees of roughly $1.6 billion to $1.8 billion for the third quarter, down from $2 billion previously. The warning dragged down financial services stocks across Wall Street, leading a broader selloff in the sector as markets face a normalization period following an unusually strong first half of the year.
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- ✓ Bank of America shares fell 5 percent following the CEO warning.
- ✓ CEO Brian Moynihan warned that third-quarter investment banking fees could decline 10 to 20 percent year-over-year.
- ✓ The bank expects third-quarter investment banking fees to be roughly $1.6 billion to $1.8 billion, compared to $2 billion previously.
- ✓ Bank of America expects third-quarter trading to be relatively flat.
What changed
Bank of America issued third-quarter guidance warning that investment banking fees could drop by more than 10 percent.
Live updates
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BofA CEO Guidance Sends Bank Stocks Lower
Bank of America shares dropped 5 percent after Chief Executive Officer Brian Moynihan warned that third-quarter investment banking fees could fall 10 to 20 percent year-over-year. The bank projects investment banking fees of roughly $1.6 billion to $1.8 billion for the third quarter, down from $2 billion previously. The warning dragged down financial services stocks across Wall Street, leading a broader selloff in the sector as markets face a normalization period following an unusually strong first half of the year.
Why it matters
The lower fee guidance highlights a cooling period for Wall Street capital markets after a robust start to 2026. Bank of America also provided separate sales and trading revenue guidance, noting that trading activity is expected to remain relatively flat in the third quarter. These projections directly impact investor sentiment regarding major financial institutions.
What is confirmed
- Bank of America shares fell 5 percent following the CEO warning.
- CEO Brian Moynihan warned that third-quarter investment banking fees could decline 10 to 20 percent year-over-year.
- The bank expects third-quarter investment banking fees to be roughly $1.6 billion to $1.8 billion, compared to $2 billion previously.
- Bank of America expects third-quarter trading to be relatively flat.
What to watch next
- Third-quarter financial results from Bank of America
- Performance updates from other major Wall Street banks regarding investment banking fees
confidence 95%Sources used for this update (9)
- Barron's — Bank of America CEO Sparks Bank Stock Selloff With One Small Word
- CNBC — Bank of America expects third-quarter investment banking fees to fall more than 10%; shares slide
- Seeking Alpha — Bank of America plunges on CEO's sales, trading revenue guidance; bank stocks sell off (BAC:NYSE)
- Yahoo Finance — Bank of America leads financial services stocks lower on weak Wall Street fee forecast
- Bloomberg.com — BofA CEO Sees Trading ‘Relatively Flat’ in Third Quarter
- www.briefs.co — JD Sports taps new North America boss and global CMO to jolt growth
- coincentral.com — Bank of America Stock Drops 5% as CEO Warns Q3 Investment Banking Fees Could Fall 20%
- blockonomi.com — Bank of America (BAC) Shares Tumble 5% Following Q3 Investment Banking Warning
- finance.yahoo.com — Bank of America Warns of 10%+ Drop in Q3 Investment Banking Fees
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