StocksMediumUpdated×2•Originally published 14 October 2026•Updated 14 October 2026•
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BofA and Morgan Stanley Q3 Earnings Diverge on Trading and Legal Costs
Key Facts
1Bank of America reported lower third-quarter profit primarily due to a regulatory settlement charge.
2Morgan Stanley's profit and revenue climbed, driven by strength in equity trading.
Bank of America BAC shares fell 5% as a $1.2 billion penalty from the U.S. Treasury Department caused the bank to miss third-quarter earnings expectations. In contrast, Morgan Stanley's MS profit and revenue climbed during the same period, driven by strength in equity trading, according to the Wall Street Journal.
BAC closed at $53.96 on October 13, 2026, following the money laundering penalty. On the same date, MS closed at $186.64 after reaching a session high of $193.3, while peer stocks JPM closed at $331.43 and GS closed at $891.91.