Hit with a $1.2 billion fine on the eve of earnings! Compliance storm sweeps through Bank of America (BAC.US), profits and stock buybacks may take a hit.

Zhitong Finance APP has learned that Bank of America (BAC.US), one of Wall Street's large financial giants, has been fined $1.21 billion by U.S. regulators for widespread deficiencies in identifying potential money laundering and other illegal activities. The bank stated that this major penalty will weigh on its third-quarter earnings.