Bank of America Stock Slips 0.63% on 47th-Highest Trading Volume Amid Political Controversy and Regulatory Pressure

On August 5, 2025, Bank of America (BAC) closed with a 0.63% decline, trading at a volume of $1.67 billion, ranking 47th in daily trading activity. The stock’s performance coincided with renewed scrutiny over alleged political bias in banking practices. President Trump reignited the debate, accusing major U.S. banks of discriminating against conservatives and himself, citing personal experiences of account closures at JPMorgan Chase and Bank of America. Trump claimed regulators pressured banks to deny services to politically sensitive clients, a narrative echoed by conservative groups and crypto firms.

Bank of America and JPMorgan Chase have consistently denied politicized account closures, with JPMorgan’s spokesperson stating they “agree with President Trump that regulatory change is desperately needed.” The banks’ CEOs, including Brian Moynihan and Jamie Dimon, have also pointed to regulatory overreach as a root cause of “debanking,” though they reject allegations of ideological bias. The White House reportedly drafted an executive order to penalize banks for discriminatory practices, though details remain unconfirmed. This regulatory uncertainty could weigh on large banks, which face heightened scrutiny amid calls for stricter oversight.

The banking sector’s regulatory environment remains a key driver of short-term liquidity dynamics. A backtested strategy of purchasing the top 500 high-volume stocks and holding for one day returned 166.71% since 2022, far outpacing the benchmark’s 29.18% gain. This underscores liquidity concentration’s role in volatile markets, where rapid regulatory shifts and political pressures can amplify trading opportunities for high-volume equities.