{"id":72963,"date":"2026-10-13T16:38:16","date_gmt":"2026-10-13T20:38:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/bank-of-america-hit-with-1-2b-fine-att-exits-mexico-in-2b-deal\/72963\/"},"modified":"2026-10-13T16:38:16","modified_gmt":"2026-10-13T20:38:16","slug":"bank-of-america-hit-with-1-2b-fine-att-exits-mexico-in-2b-deal","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/bank-of-america-hit-with-1-2b-fine-att-exits-mexico-in-2b-deal\/72963\/","title":{"rendered":"Bank of America Hit with $1.2B Fine; AT&#038;T Exits Mexico in $2B Deal"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Bank of America (<a href=\"\/stock\/BAC\">BAC<\/a>)<\/strong> was hit with over <strong>$1.21 billion<\/strong> in total penalties by the U.S. Treasury for systemic anti-money laundering (AML) and sanctions violations, marking one of the largest enforcement actions in department history.<\/li>\n<li><strong>AT&amp;T (<a href=\"\/stock\/T\">T<\/a>)<\/strong> reached an agreement to sell its Mexican wireless operations to <strong>Grupo Televisa<\/strong> and <strong>Fintech Holdings<\/strong> for <strong>$2 billion<\/strong> in cash, as the telecom giant pivots to focus on its U.S. fiber and 5G infrastructure.<\/li>\n<li><strong>U.S. Treasury yields<\/strong> retreated from 24-year highs as <strong>Fed Governor Christopher Waller<\/strong> suggested that elevated long-term rates are already cooling the housing and auto sectors, potentially reducing the need for further aggressive monetary tightening.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>)<\/strong> shares reached a new record high as U.S. stocks recovered from session lows, supported by signals from Federal Reserve officials that the current rate-hike cycle may be nearing its conclusion.<\/li>\n<\/ul>\n<h2>Bank of America Faces Massive Regulatory Penalties<\/h2>\n<p>The U.S. Department of the Treasury announced a sweeping enforcement action against <strong>Bank of America (<a href=\"\/stock\/BAC\">BAC<\/a>)<\/strong> on Tuesday, imposing more than <strong>$1.21 billion<\/strong> in fines. The penalties stem from the bank&#39;s failure to mitigate and report priority national security risks, including illicit finance networks and money laundering along the U.S. southwest border. The <strong>Financial Crimes Enforcement Network (FinCEN)<\/strong> assessed a <strong>$1.2 billion<\/strong> penalty, which incorporates a <strong>$750 million<\/strong> civil money penalty from the <strong>Office of the Comptroller of the Currency (OCC)<\/strong>\u2014the largest in the OCC&#39;s history.<\/p>\n<p>In a separate but related action, the <strong>Office of Foreign Assets Control (OFAC)<\/strong> reached an <strong>$11.66 million<\/strong> settlement with the bank. This agreement resolves potential civil liability for <strong>475 apparent violations<\/strong> of U.S. sanctions programs targeting countries including <strong>Russia, Belarus, Iran, Burma, and Somalia<\/strong>. Treasury Secretary <strong>Scott Bessent<\/strong> stated that the actions send a &quot;clear message&quot; that even the largest financial institutions must adhere to anti-money laundering and sanctions obligations to protect the U.S. financial system.<\/p>\n<h2>AT&amp;T Streamlines Portfolio with $2B Mexico Exit<\/h2>\n<p><strong>AT&amp;T (<a href=\"\/stock\/T\">T<\/a>)<\/strong> has agreed to sell <strong>AT&amp;T Mexico<\/strong> to a consortium led by <strong>Grupo Televisa<\/strong> and <strong>Fintech Holdings<\/strong> for <strong>$2 billion<\/strong> in cash. The deal, expected to close in the <strong>first quarter of 2027<\/strong>, includes additional contractual and contingent benefits. This divestiture marks the end of AT&amp;T&#39;s decade-long effort to compete in the Mexican wireless market, where it faced stiff competition from billionaire <strong>Carlos Slim&#39;s<\/strong> America Movil.<\/p>\n<p>CEO <strong>John Stankey<\/strong> emphasized that the move aligns with the company&#39;s long-term strategy to concentrate capital on its domestic market. By exiting Mexico, AT&amp;T aims to accelerate investments in <strong>fiber-optic networks and 5G technology<\/strong> within the United States. The company assured customers that the transaction would not impact the experience of U.S. consumer or enterprise users traveling or doing business across the border.<\/p>\n<h2>Treasury Yields Ease as Fed Signals Potential Pause<\/h2>\n<p>U.S. Treasury yields declined on Tuesday as investors processed comments from <strong>Federal Reserve Governor Christopher Waller<\/strong>. Speaking at a Bloomberg event, Waller noted that the recent surge in long-term yields\u2014which recently touched <strong>24-year highs<\/strong>\u2014is effectively &quot;doing a little bit of the work&quot; of tighter monetary policy by weighing on demand for housing and automobiles. He attributed the rise in yields to <strong>stronger economic growth and AI-related capital demands<\/strong> rather than rising inflation expectations, which he described as &quot;well anchored.&quot;<\/p>\n<p>Market sentiment was further bolstered by <strong>New York Fed President John Williams<\/strong>, who suggested that while one more rate hike might be appropriate this year, further increases in the long term may not be necessary. The <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPX\">SPX<\/a>)<\/strong> finished the session little changed after recovering from earlier lows, while <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>)<\/strong> hit a record high, leading a recovery in the technology sector. Investors are now looking ahead to Wednesday&#39;s <strong>Consumer Price Index (CPI)<\/strong> data, which is expected to show headline inflation lifted by higher gasoline prices.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Bank of America (BAC) was hit with over $1.21 billion in total penalties by the U.S. Treasury for 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