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Bank of America wealth earnings slammed by stock market rout

Bank of America Corp said its wealth management business' income plunged 19 percent in the third quarter, underscoring how stock market selloffs can torpedo even an area that banks see as relatively safe and stable.

The bank said that with the U.S. stock market falling during the quarter, many clients shrank from trading, cutting the brokerage unit's commission revenue. There were also fewer initial public offerings and sales of new mutual funds to help generate commission income. The value of client accounts also fell, which reduced its revenue from clients that pay a percentage of their brokerage assets as a fee.

"When market activity is lower, we tend to see less activity in the transactional side of that business," said Chief Financial...


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