Senator Warren Urges DOJ Investigation Over Bank of America's Alleged Compliance Failures

Senator Warren Calls for DOJ Criminal Investigation Into Bank of America

On October 14, 2026, Senator Elizabeth Warren, who serves as the Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, publicly criticized Bank of America (NYSE: BAC) for what she termed a minor fine in light of significant violations regarding anti-money laundering (AML) regulations. As reported by CNBC on October 29, 2026, the senator is now pushing for the Department of Justice (DOJ) to initiate a criminal probe into the bank and its executives after the institution acknowledged it had willfully contravened federal AML laws.

Filings recently made indicate that a securities class action lawsuit has also been lodged against Bank of America. This lawsuit aligns with the efforts of national securities litigation law firm Hagens Berman, which is actively investigating legal claims linked to the bank’s admission of wrongdoing as well as the conduct of certain senior executives, asserting they also breached federal securities laws. In light of this, the firm is calling on investors with considerable losses related to their shares in the bank to provide their trading data. The relevant period of investment spans from August 1, 2025, to October 13, 2026, with a significant lead plaintiff deadline set for December 15, 2026.

The allegations in the class action lawsuit argue that during the class period, Bank of America misled investors by failing to disclose critical adverse information concerning its compliance controls as well as its exposure to regulatory risks. Notably, the suit claims that the bank maintained inadequate Bank Secrecy Act (BSA) and AML monitoring systems while deprioritizing compliance functions in favor of profit generation.

One of the most alarming assertions is that the bank failed to identify or report over $5 billion in suspicious transactions to the Financial Crimes Enforcement Network (FinCEN), with over $1 billion connected to high-risk illicit finance activities. As a result of these deficiencies, Bank of America has faced substantial regulatory scrutiny and enforcement actions, including facing billions of dollars in penalties, rendering previous claims regarding its regulatory compliance and risk management approach fundamentally misleading.

The situation escalated on October 13, 2026, when the U.S. Treasury Department alongside FinCEN and the Office of the Comptroller of the Currency issued significant enforcement actions against the bank, mandating it to pay upwards of $1.2 billion in fines due to extensive failures regarding BSA and AML compliance. Following this announcement, Bank of America's stock took a notable hit, declining by more than 4.8% to close at $51.39 per share on October 14, leading to a substantial loss in market capitalization and resulting in significant losses for shareholders.

For shareholders who acquired Bank of America stock during the class action period and sustained losses, there’s an opportunity to seek legal representation as lead plaintiffs in this case, with a deadline to file by December 15, 2026. A lead plaintiff serves as a representative for other members of the class in guiding the litigation’s proceedings. Interested investors are encouraged to act immediately and provide their losses report.

Hagens Berman's attorney Reed Kathrein expressed a focus on the significant discrepancy between the bank’s past assurances regarding compliance and the revelations presented by the Treasury. Additionally, whistleblowers who possess non-public information about Bank of America are advised to consider their potential contributions to the ongoing investigations utilizing SEC’s whistleblower program, which includes provisions for monetary rewards amounting to as much as 30% of any successful recovery.

Hagens Berman is recognized as a prominent plaintiff's rights law firm dedicated to holding corporations accountable. Its history in achieving successful litigation outcomes has seen recovery exceeding $2.9 billion across numerous cases involving corporate misconduct.

For more details and to consult on possible action about the Bank of America situation, visit Hagens Berman’s website or contact their legal team.