Bank of America shares drop 8% after third-quarter revenue miss and regulatory penalty

BREAKING: $BAC shares drop 8% after Bank of America misses on third-quarter trading revenue and takes the hit of a $1.2 billion Treasury fine.

Bank of America just lost eight percent of its value in a day.

Two punches landed at once. Third-quarter trading revenue came in under what Wall Street wanted, and on top of that the bank is swallowing a 1.2 billion dollar fine from the Treasury. Either one alone stings. Together, traders hit the sell button and didn't look back. This is the tower where that math got done.

And the fine is the part I'd watch. A revenue miss is a bad quarter, banks have those. A 1.2 billion dollar penalty from the Treasury, seen here, is regulators telling you something went wrong inside the building, and that question lands on Brian Moynihan's desk. The street can forgive a soft trading desk. It's a lot less forgiving about compliance bills with ten digits.

One of America's biggest banks just paid over a billion dollars to its own government, and shareholders paid eight percent more on top.

This is Sara White, reporting for HIT.