New York, Jan 20, 2026, 11:45 EST — Regular session
- Shares of Bank of America slipped roughly 0.3% during late-morning trading.
- The bank announced plans to grant roughly $1 billion in equity to its non-executive staff.
- U.S. bank stocks remained under pressure as investors awaited clarity on the proposed credit-card rate cap.
Bank of America Corporation shares slipped 0.3% to $52.83 on Tuesday following the announcement that it will grant roughly $1 billion in stock to employees outside senior management. CEO Brian Moynihan said, “when our teammates share in our company’s success, it strengthens our business and the communities we serve.” The bank said the awards represent nearly 19 million shares and will be distributed to about 96% of its workforce, continuing the program for the ninth consecutive year. (PR Newswire)
The grant doesn’t hit the balance sheet, but it does increase the share count, albeit slightly. This comes at a time when investors are on edge about costs, consumer credit, and anything that might squeeze earnings power.
The timing coincides with a looming policy risk. U.S. bank stocks dropped as investors eyed the Trump administration’s Jan. 20 deadline to enforce a 10% cap on credit-card interest rates. JPMorgan slipped 1.8%, Citigroup fell 2.4% in morning trading, per Reuters. “For now, it’s an overhang, but that overhang could clear quickly,” said Brian Jacobsen, chief economic strategist at Annex Wealth Management, noting Congress might ultimately decide the outcome. Analysts at TD Cowen see “a political compromise” emerging. (Reuters)
Bank of America has taken advantage of a stronger mood in capital markets. According to Reuters, the bank exceeded fourth-quarter profit expectations last week and reported its 2025 profit climbed to $30.5 billion, up from $27 billion the previous year. Its shares finished 2025 roughly 25% higher, marking a third consecutive year of gains. (Reuters)
The sector’s focus remains split between earnings and rates. U.S. Bancorp posted a nearly 23% rise in quarterly profit, driven by higher interest income and increased fee revenue. CEO Gunjan Kedia highlighted “record consumer deposits” and strategic balance-sheet moves. Net interest income—the gap between loan earnings and deposit costs—increased 3.3% to $4.28 billion, according to Reuters. (Reuters)
Bank of America’s use of employee stock awards is nothing new, but investors typically boil it down to two key concerns: how lean management intends to keep expenses and whether the bank will keep share issuance under control.
Washington could prove to be the bigger wildcard for major consumer banks. Should a strict cap on card rates take hold, banks might pull back on credit, slash rewards, or rearrange fees. Such shifts could curb spending and slow loan growth, even as they help safeguard profit margins.
Rates remain a key factor. But as investors wrestle with bank earnings in a lower-rate environment, loan demand and deposit costs take on greater importance.
Traders are eyeing the Federal Reserve’s policy meeting on Jan. 27-28 for clues on interest rate moves. Before that, they’ll look for clear guidance from the White House or Congress about what comes after the Jan. 20 credit-card deadline. (Federal Reserve)
