Bank of America Bracing for $800,000,000 Loss As Investigators Probe BofA, JPMorgan Chase and Wells Fargo’s Alleged Refusal To Reimburse Customers

The second-largest U.S. financial institution by whole property says it’s getting ready for important losses attributable to ongoing regulatory challenges.

In a brand new submitting with the U.S. Securities and Alternate Fee (SEC), Financial institution of America says it faces a “moderately doable and estimable” lack of as much as $800 billion because of investigations by the Shopper Monetary Safety Bureau (CFPB) and others federal regulators. .

“The corporate has responded to a Shopper Monetary Safety Bureau (CFPB) investigation relating to the corporate’s processing of digital cash funds via the Zelle community.

CFPB employees has initiated discussions with the Company to resolve the investigation or pursue enforcement motion. The corporate is evaluating subsequent steps, together with litigation.”

Financial institution of America additionally says it’s in discussions with a number of unnamed federal regulators about its anti-money laundering and sanctions compliance applications, and {that a} decision of the discussions might lead to “a number of public orders from the regulators.”

Investigators are reportedly investigating BofA, together with JPMorgan Chase and Wells Fargo, to find out whether or not the banks are correctly reimbursing fraud victims on the Zelle cost community and whether or not the banks are successfully eliminating scammers’ accounts.

Zelle has additionally caught the eye of US lawmakers.

The Senate Everlasting Subcommittee on Investigations mentioned in July that Financial institution of America, Wells Fargo and JPMorgan Chase had collectively refused to refund $880 million in disputed transactions on Zelle between 2021 and 2023.

The subcommittee discovered that in 2023, the three trillion-dollar banks reimbursed victims for reported Zelle scams solely 38% of the time. In 2019, the three reported Zelle rip-off victims reimbursed 62% of the time.

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