Bank of America expects investment banking fees to fall more than 10% in Q3

Bank of America CEO Brian Moynihan forecast third-quarter investment banking fees of $1.6 billion to $1.8 billion at the Barclays financial services conference on September 14, 2026, down about 10% to 20% from $2 billion a year earlier. Shares closed roughly 5% lower Monday. The forecast followed a sharp July unwind in the global AI trade; AI-focused hedge fund Situational Awareness, run by Leopold Aschenbrenner, faced a wipeout. Goldman Sachs shares fell about 4%, Morgan Stanley about 3%, and JPMorgan Chase, Citigroup and Wells Fargo between 1% and 2%. Sales and trading revenue is projected flat year-over-year after Q2 fees rose 50% and trading rose 33%. Moynihan said "We're not as well-positioned in some of the businesses that have more activity." The broader market is on pace to be down roughly 10% per Dealogic. Citigroup CFO Gonzalo Luchetti said market revenue is tracking toward mid-single-digit growth. Moynihan said "We feel very good about the underlying US economy."