Bank of America Engages Contractors to Address Software Weaknesses Identified by Anthropic’s Mythos

Geopolitical tensions in the Strait of Hormuz have caused oil prices to surge, leading to inflation and a crisis in the US banking sector. According to Bloomberg, Bank of America (BAC), State Street (STT), and Citigroup (C) shares dropped 18%, 14%, and 10% respectively. The Fed raised rates to 4% to combat inflation, further straining banks. The KBW index of major US banks fell 13% from its August peak, marking its longest decline since 2008.

The US Office of the Comptroller of the Currency (OCC) reviewed nine banks, finding discriminatory practices against customers based on political or religious views. JPMorgan Chase's subsidiary WePay closed accounts linked to conservative merchandise and organizations. JPMorgan shut down WePay and denied altering records for political reasons. Other banks like PNC and Capital One also faced allegations of discrimination. The OCC plans to assess regulatory changes to prevent such practices.

Major U.S. banks have seen significant declines from their summer peaks, with Goldman Sachs down 24%, Capital One down 25%, and others ranging from 11% to 19%. JPMorgan missed earnings estimates, reporting $5.57 per share versus the expected $5.85, due to a slowdown in investment banking and trading revenue. Executives cited market volatility and geopolitical risks as factors affecting business.

Bank of America (BAC) faces $1.21B in penalties for failing to report $5B in suspicious transactions, including potential money laundering. The Treasury Department cited ongoing compliance failures. BAC's stock fell 2% in after-hours trading on Oct. 13, with a 4.49% YTD decline. CEO Brian Moynihan acknowledged the issues and ongoing remediation efforts. Q3 earnings showed $6.9B net income and 3% revenue growth, with full-year guidance raised to 8%.

The OCC found that nine major banks used subjective reputation policies, impacting lawful businesses, including digital assets. The report, based on extensive data, supports crypto industry claims of debanking but does not prove a coordinated government campaign. Banks reviewed include JPMorgan Chase, Bank of America, and Citibank.

Bank of America (BAC) reported Q3 revenue of $30B, up 3.2% year-over-year. Net income was impacted by a $1.2B compliance charge, with adjusted EPS at $1.08. Deposits rose 2% and loans increased 6% year-over-year, while consumer wealth remained strong. The bank also sold investment-grade corporate bonds to boost liquidity, following a volatile market week.