Bank of America shares declined 1.4% amid broader market weakness. President Trump announced plans to raise global tariffs to 15% and stated he does not need Congressional approval for tariffs, causing banking sector stocks to trade lower overall. In company-specific news, Bank of America committed $25 billion to expand its private credit platform and appointed new leadership to oversee the effort. The bank also launched expanded BofA Rewards program enhancements and art consulting services for high net worth clients. Additionally, Merrill Lynch launched a special trading desk for the wealthiest clients with at least $50 million in assets. Separately, Warren Buffett's Berkshire Hathaway sold Bank of America shares during its final quarter as CEO, marking the sixth consecutive quarter of sales and reducing the stake by 75% since mid-2024.
Read full analysisBank of America shares declined 1.4% amid broader market weakness. President Trump announced plans to raise global tariffs to 15% and stated he does not need Congressional approval for tariffs, causing banking sector stocks to trade lower overall. In company-specific news, Bank of America committed $25 billion to expand its private credit platform and appointed new leadership to oversee the effort. The bank also launched expanded BofA Rewards program enhancements and art consulting services for high net worth clients. Additionally, Merrill Lynch launched a special trading desk for the wealthiest clients with at least $50 million in assets. Separately, Warren Buffett's Berkshire Hathaway sold Bank of America shares during its final quarter as CEO, marking the sixth consecutive quarter of sales and reducing the stake by 75% since mid-2024.
Bank of America is the second-largest U.S. bank by assets, operating across consumer banking, wealth management through Merrill, and investment banking. The company recently committed $25 billion to private credit deals and launched a specialized trading desk for ultra-high-net-worth clients through Merrill's Direct Markets Group. As a rate-sensitive financial institution, BAC is directly exposed to the tariff-driven sector rotation that has made financials the worst-performing sector for two consecutive sessions.