BUZZ — Street View: Magnitude of BofA money laundering fine significant

* Bank of America has been fined $1.21 billion by US regulators for widespread failures to detect ‌potential money laundering and other illicit activity, a penalty the bank said will hurt Q3 earnings * Shares of the second-largest US bank fell 1.7% in premarket trading; stock down 1.9% YTD through last close Bigger-than-expected Fine * RBC Capital Markets ("outperform," PT: $65) says magnitude of combined penalties is significant and underscores heightened regulatory focus on anti-money laundering (AML) compliance * TD Cowen ("hold," PT: $60) says BAC generally considered a very conservative institution, so any company-specific AML-related violation/allegation comes across as a black eye * Adds that investors could reasonably have hoped the lender had already taken steps to correct any issues as this follows a 2024 cease-and desist order requiring BAC to address shortcomings in tackling money ​laundering * Jefferies ("buy," PT: $70) says key debate is how long consent order could be in place and extent to which it could impede operations, if at all * Barclays ("overweight," PT: $72) says size of fine much larger than it anticipated (Reporting by Arasu Kannagi Basil in Bengaluru) ((