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Bank Of America To Pay $1.2 Billion, Including Record $750 Million OCC Penalty


The Office of the Comptroller of the Currency fined Bank of America $750 million on October 13, 2026, for failures in its anti-money laundering program. It’s the largest civil money penalty in OCC history, and it hits the bank behind millions of everyday Bank of America savings and checking accounts.

The OCC penalty is one part of a larger Treasury action. FinCEN, the Treasury unit that recently ordered banks to report student aid fraud, assessed a $1.2 billion penalty that credits the OCC’s $750 million. The Office of Foreign Assets Control added an $11.6 million settlement over 475 apparent sanctions violations, according to the Associated Press.

According to a statement from Treasury Secretary Scott Bessent, “Financial institutions are on the front lines of protecting our economic and national security. When a bank of this size fails to meet its anti-money laundering and sanctions obligations, the consequences extend far beyond its own walls, exposing the entire U.S. financial system to significant illicit finance risks.“

Why It Matters

Bank of America is the second-largest bank in the U.S., with about 3,500 branches and 15,000 ATMs, according to the OCC consent order. The OCC’s previous record was the $450 million penalty against TD Bank in October 2024.

The money comes from the bank’s revenues, not customer accounts. The OCC says the penalty goes to the U.S. Treasury, and deposits stay protected by FDIC insurance up to $250,000 per depositor, per bank, per ownership category.

Why The Massive Penalties

Here’s why Bank of America is facing such massive fines:

  • The bank failed to properly monitor trillions of dollars in transactions since at least 2019, leading to missed and late suspicious activity reports involving billions of dollars.
  • From 2019 to 2023, management received reports showing the bank skipped suspicious activity reports on roughly 18% to 44% of potentially suspicious activity, depending on the year.
  • Its backlog of cases waiting for investigator review peaked at nearly 200,000 in 2024.
  • OCC examiners sampled the bank’s $102 billion credit card portfolio and flagged 10 accounts. That review led to reports on hundreds of millions of dollars in suspicious transactions.
  • About 33,300 outgoing wires totaling roughly $1 billion went out with inaccurate sender information between November 2021 and October 2024.

“The bank’s poor response to its BSA deficiencies is unacceptable,” Comptroller Jonathan V. Gould said. “Financial crime compliance is serious, and we are responsible for getting it right,” Bank of America said in a statement.

How This Connects

Regulators have stepped up action against consumer-facing money platforms. The College Investor has covered Cash App’s $175 million order over fraud concerns and New York’s lawsuit against Zelle over $1 billion in alleged fraud. Both cases involved fraud moving through payment apps, while this one centers on a bank failing to flag suspicious money for investigators.

This has also been coming at a time as the U.S. government has been cracking down on waste and fraud across the board. We’re seeing it in banking, but also in financial aid and student loan disbursements.

What’s Next

Bank of America will take a $1.2 billion non-tax-deductible charge in its third-quarter results. The bank remains under its December 2024 cease-and-desist order, and the OCC kept the right to add penalties if the violations continue.

Customers who want out can follow our steps on how to switch banks.

Editor: Colin Graves

The post Bank Of America To Pay $1.2 Billion, Including Record $750 Million OCC Penalty appeared first on The College Investor.

CLARITY Act Supporter Argues That SEC, CFTC Crypto Rules Fall Short Without Legislation


House Financial Services Committee Chairman French Hill has argued that recent efforts by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to craft digital-asset rules fall short of the lasting framework only Congress can deliver.

After the Senate blocked the CLARITY Act, Hill credited the agencies with stepping in but insisted their actions cannot replace a statutory solution.

The CLARITY Act, which Hill helped advance as a primary sponsor, aimed to establish clear market-structure rules for most cryptocurrency activity in the United States.

It would have drawn firmer lines between the SEC’s and CFTC’s jurisdictions over digital assets and digital commodities.

The House had previously passed related legislation with bipartisan support, but the Senate failed to advance the measure in a 49-50 procedural vote in mid-September 2026.

It required 60 votes to move forward, leaving the bill stalled and prompting immediate regulatory responses.

SEC Chairman Paul Atkins and CFTC Chairman Michael Selig both indicated their agencies would proceed under existing statutory authority.

Within days, the SEC introduced an innovation exemption allowing certain tokenized stock trading under temporary relief, and it proposed updates to custody rules for investment advisers and funds handling crypto assets.

The CFTC submitted market rulemaking proposals for White House review and outlined steps toward bringing crypto trading platforms under federal oversight.

These steps sought to address questions about permissible activities, custody, and platform regulation that the legislation was designed to settle.Hill acknowledged the progress.

He noted that Atkins and Selig have used their regulatory powers and exemptive relief to give practical definition to digital assets and digital commodities, helping create a functional system for this form of finance in the United States.

Yet he was direct about the limits: in his judgment, these regulatory policies fall short of what is required, which is a legislative solution.

He pointed to his earlier work on the Financial Innovation and Technology for the 21st Century Act in the prior Congress as further evidence of the need for statute.

According to Hill, the core distinction is durability.

Exemptions, guidance, and even formal agency rules can be challenged in court, revised or withdrawn by a future administration, or limited by questions of statutory authority.

A law passed by Congress, by contrast, would set durable jurisdictional boundaries and obligations that the agencies would then implement.

Without that permanent change, the framework remains vulnerable to shifts in regulatory priorities.

Hill has argued that only such legislation can secure lasting certainty and keep the United States leading in digital assets and blockchain technology.

His stance pushes back against a view that has gained traction in parts of the industry since the Senate vote: that market participants can achieve much of what they need by working with regulators rather than waiting on Congress.

Hill has continued to hope the CLARITY Act can be revived during the post-election lame-duck session, when a narrow window of Senate session days remains before the next Congress. It’s uncertain whether they can resolve the disagreements that blocked the bill in that period, but the agencies are already moving ahead with their own initiatives in the meantime.



Sam’s Club CEO Latriece Watkins feels most powerful watching the people she’s invested in succeed



Sam’s Club CEO Latriece Watkins has a career resume that most workers would gawk at, working her way up from an intern at Walmart all the way to leader of one of America’s biggest grocery retailers.

But it isn’t the executive titles or career milestones that makes her feel powerful: The greatest source of power comes from watching the peers she’s helped ultimately succeed.

“When I feel most powerful is when I see the people I’ve invested in make moves,” Watkins told Most Powerful Women Editor Emma Hinchliffe onstage at Fortune’s annual MPW Summit in Santa Barbara, Calif., on Tuesday. “When I see them get promoted, I see all of their faces running across memory from very early in my career, or very early in their careers, to where they’ve moved now.”

Solely focusing on one’s own career could leave opportunities for greater impact on the table, according to the Fortune 500 executive. Watkins has made many strides in her own career, becoming the first woman and person of color to serve as Walmart’s chief merchant back in 2023—one of the most influential roles in retail. And in helping others along her three-decade career at the $890 billion parent company (Walmart), she’s leveraged a symbiotic strategy with her peers so that everyone succeeds. 

“The contributions we make are more than we could individually do,” she continued. “So power for me is the names of all the people that I can say who [have] benefited from my contributions, and I’ve benefited from being able to either contribute or get feedback from them.”

Watkins said that despite being in the top role, business leaders will always need people—and finding the best way to shepherd them can be a challenge for busy executives. In her eight months as CEO, the 51-year-old has found that understanding the power of workers and delivering clarity are required in leadership. Employees will be looking to the top boss for transparency and a clear vision. To get that clarity, Watkins recommends setting aside time to think things through.

“People look to you for clarity, which means you have to be clear. You don’t think out loud,” she said. “When you’re the leader, people want to know what you think, and if you haven’t cleared it up for yourself and you’re thinking out loud, you’ll confuse them.”

“So take the time—make the time—to create clarity for yourself,” Watkins continued. “It’s one of the hardest things to find this time for yourself. But it’s required, because you can’t get clarity without it.”

GOP billionaire behind history’s biggest political gift could be sued over a Chicago rat infestation



Chicago officials are weighing legal action against Barre Seid, the 94-year-old industrialist behind the largest known political advocacy donation in U.S. history, over claims that workers he hires to scatter nuts in Lincoln Park are fueling a rat infestation.

Ald. Timmy Knudsen told Axios he is pushing the Chicago Park District to sue Seid for damage to the park, while Park District officials told the publication they are still weighing their options.

In an Aug. 25 letter to Seid, Knudsen called the matter a final warning and said city staff had received photos and video documenting Seid or his staff putting out food daily for squirrels and other wildlife, according to WGN. The letter said the feeding created a public health hazard because it drew in not only squirrels but also pigeons and rats. Knudsen cited repeated violations of a city code provision barring the buildup of garbage or food that could feed or shelter rats, according to Block Club Chicago, and gave Seid 15 days to stop.

While the city has issued citations, it allegedly did little to end the feeding of Chicago’s wildlife. The letter states that Streets and Sanitation has inspected the property multiple times over several years and issued multiple warnings and citations, and that the violations continued despite the fines being paid. Seid paid all fines and tickets without contesting them, Axios reported.

“Typically, when you ticket somebody, it stops their bad behavior,” Knudsen told WGN. He said the feeding has increased since the city began ticketing. Neither Knudsen nor Seid responded to Fortune’s requests for comment.

Shells from Brazil nuts, hazelnuts, peanuts and walnuts were seen at the base of trees near rat burrows in the park, Axios reported. Knudsen told the publication the burrows have grown where the nuts are left, and that Green City Market vendors have seen rats while setting up. Meanwhile, city documents say taxpayers could end up paying for repairs.

According to neighbors and Knudsen, Seid and his wife, Barbara, have hired people for years to carry bags of nuts through the neighborhood and the park to feed squirrels, Block Club reported. Knudsen said the workers have been distributing nuts in the park, two or three blocks from the Seids’ home, since early spring.

Chicago has ranked first on Orkin’s list of America’s rattiest cities every year since the list began, ten straight years as of 2024.

Who is Barre Seid?

Seid made his fortune as the owner of Tripp Lite, a Chicago maker of surge protectors and power equipment. ProPublica reported that he transferred the company to a dark money group run by conservative legal activist Leonard Leo, created in April 2020. It was then sold to Eaton in March 2021 for $1.65 billion, according to the company’s SEC filing, and thanks to that structure, tax experts told ProPublica Seid was able to avoid as much as $400 million in taxes.

As Tripp Lite grew, Seid wrote checks to the Republican National Committee, ProPublica reported, and a longtime adviser described him as the Heartland Institute’s major patron, a Chicago-area think tank that disputes mainstream climate science. Tax records obtained by ProPublica show at least $775 million in donations to nonprofits between 1996 and 2018, almost all of it anonymous.

In one email obtained by ProPublica and The Lever, Seid described himself as prone to “anonymity paranoia.” He sometimes used a fake name, Ebert or Elbert Howell, which Tripp Lite staff gave to salesmen and business registries as the CEO’s name, according to his testimony in a federal lawsuit.

Chicago has ranked first on Orkin’s list of America’s rattiest cities every year since the list began, ten straight years as of 2024.

MPC urges Ottawa to move ahead with CRA income verification




The association renewed its call for a secure income verification tool and backed expanded mortgage funding capacity and insurance eligibility for properties with up to eight units.

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