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Bank of America reported weaker third-quarter earnings as declining capital markets revenue and a $1.2bn regulatory penalty weighed on results. The bank earned $6.9bn, or 91 cents per share, down from $8.3bn a year earlier. Excluding the penalty, earnings reached $1.08 per share, below analysts' $1.10 forecast. Sales and trading revenue declined 5% to $5.1bn, while investment banking fees dropped 11% to $1.8bn amid challenging bond market conditions and reduced deal activity. The regulatory settlement followed failures to report more than $5bn in suspicious transactions, prompting additional government oversight and requirements to strengthen anti-money-laundering controls. Bank of America must work with an independent third party to identify previously undetected activity. Shares fell 4.2% in premarket trading as investors assessed weaker performance, regulatory expenses and potential ongoing compliance costs.

 

Reuters

The 2026 benchmark for AI in accounting is here

AI adoption is accelerating across accounting, but not every team is seeing the same results.

Independent research commissioned by FloQast among accounting and finance professionals in the US and UK reveals a profession in transition. Six in ten accountants still spend 40% or more of their time on manual work, while some organisations are already seeing meaningful benefits from AI.

So what are the most AI-mature accounting organisations doing differently?

The State of Accounting AI 2026 report benchmarks where the market stands today, explores what separates the organisations pulling ahead, and highlights the leadership practices supporting more mature AI adoption.

For accounting and finance leaders, it offers a useful benchmark for assessing where their organisation sits today and what could help move it forward.

Download the report

 

The IMF has warned of AI's looming impact on jobs. “It is a slow-moving tsunami,” IMF Managing Director Kristalina Georgieva, speaking during a Civil Society town hall at the IMF-World Bank Annual Meetings in Bangkok, said of the impact on employment. “We estimate 40 per cent of jobs will be augmented, downgraded or eliminated. In advanced economies, [that figure is] 60 per cent. [In] low income countries, [around] 23 per cent.” She added: “We cannot today imagine what exactly the world of work will be five years from now . . . but we can be disciplined, draw lessons and act on them.”

 

CNBC

Bloomberg

Reuters

U.S. inflation is expected to accelerate in September as surging energy prices increase pressure on consumers and businesses. Economists forecast the consumer price index will rise 0.6% monthly and 3.6% annually, moving further above the Federal Reserve's 2% target. Core inflation, excluding food and energy, is projected to increase 2.5% year-over-year. Brent crude prices climbed more than 14% in September, contributing to broader concerns about rising costs across the economy. RSM Chief Economist Joe Brusuelas warned: “We've got real upside risk on the September CPI.” Following its September interest rate increase, the Federal Reserve faces mounting pressure to tighten monetary policy further, with markets anticipating another increase in December. Economists also expect wholesale inflation to accelerate, reinforcing concerns about persistent pricing pressures ahead of November's midterm elections.

 

CNBC

Anthropic has warned that some of its AI models could soon become “self-replicating” and find ways to infiltrate commercial internet-of-things devices, including smart ovens and off-brand Android TV boxes. “A replicator . . .  would be challenging to shut down,” Anthropic researchers wrote in a report, “since there’s no centralized point to shut off.” Anthropic acknowledged that there is not yet a “fully rogue replicator,” but agents are “becoming increasingly capable of completing the individual steps in the replication chain (and passing on their adaptations to future copies of themselves).” The AI lab said in its report: “As a prediction that goes beyond our experiments, we expect a future awash with agents running on all types of hardware, including some that aren’t under human control.”

 

CNBC

Reuters

The Guardian

JPMorgan Chase is taking a firm stance against external artificial intelligence agents accessing customer accounts. CEO Jamie Dimon emphasized the risks involved, saying: “We’re not going to allow just any . . . outside agent to come in inside the company, because it’s just too risky for clients and for JPMorgan.” The bank currently blocks such agents from operating on behalf of retail customers, allowing only read-only access to certain data. Dimon noted that while JPMorgan is piloting its own AI tool, Smart Cash, to enhance cash flow management, customers must understand the risks associated with using external agents, including potential liability transfer. The bank aims to ensure that any technology used serves customers safely.

 

CNBC

Abdulrahman Alfozan, a 35-year-old engineer at OpenAI, has been arrested for allegedly planting a recording device in the company's San Francisco office. OpenAI's security team discovered the device, which was hidden in a television located in an "executive conference room," and reported it to the FBI. Alfozan, who had been with the company since July 2025, was caught on camera "near" the conference room. The Justice Department has said he faces charges for intercepting communications, which could lead to five years in prison and a $250,000 fine. OpenAI confirmed there is no evidence of data theft at this time. Alfozan is set to appear in court on October 19. "This serious situation underscores why winning the global super intelligence race is a national security prerogative," Director of National Intelligence Jay Clayton said. "The intelligence community remains committed to safeguarding America's cutting-edge intellectual property from foreign threats," he added.

 

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U.S. News

The Federal Trade Commission (FTC) and seven U.S. states claim that pharmaceutical executive Martin Shkreli - the so-called “Pharma Bro” - repeatedly violated a 2022 lifetime ban on participating in the pharmaceutical industry, and are asking a judge to hold him in contempt. The FTC said Shkreli had publicly traded in pharmaceutical stocks and broadcast his opinions about companies in the sector since his release from prison in May 2022. “After a full trial, the court found that Martin Shkreli’s conduct drove up prescription drug costs for American patients and blocked the entry of lower-cost generics,” said Daniel Guarnera, director of the FTC’s Bureau of Competition. “When judgment is entered by a court, whether it’s a settlement or an order following a trial, defendants must fulfill their obligations.”

 

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New York Times

The Guardian

CVS Health has agreed to pay $315m to resolve a Justice Department case alleging the unlawful dispensation of medically unnecessary prescriptions of opioids. A 2024 lawsuit had accused the pharmacy operator of providing massive amounts of opioids and other controlled substances “to fuel its own profits at the expense of public health and safety.” Associate Attorney General Stanley Woodward said: “Today’s settlement is a significant milestone in the Justice Department’s efforts to combat the opioid epidemic by cracking down on pharmacies who unlawfully fulfill prescriptions for controlled substances.” CVS said that its pharmacists were trained “in the safe and appropriate use of all medications” and it had implemented “best-in-class” programs to help them “make the best decisions on behalf of patients.”

 

Reuters

PBS

NBC News

The AICPA has released a practice aid titled "Artificial Intelligence (AI) Considerations for Financial Statement Auditors," which aims to help auditors navigate the complexities introduced by AI in financial reporting and auditing. Amy Pawlicki, the AICPA's vice president of Assurance & Advisory Innovation, said: “AI tools are already benefiting the efficiency and effectiveness of both financial statement preparation and the audit in a number of ways.” The guidance assists CPAs in evaluating AI-related risks and understanding how AI impacts controls and audit responses. The aid includes practical advice on quality management and professional judgment, emphasizing that auditors remain responsible for their audits. Future updates will address risk assessment and audit evidence evaluation in AI contexts. Earlier this year, the AICPA also released resources on AI's effects on SOC engagements and ethical considerations.

 

Bloomberg Tax

Journal of Accountancy

Iran-backed Houthis have launched missile and drone attacks across Saudi Arabia, hitting oil giant Saudi Aramco’s headquarters in the east of the kingdom. There was a "limited fire" at the company’s office complex in Dhahran and "no casualties or fatalities," Saudi authorities said. Euronews notes that several countries have issued travel warnings to their citizens in Saudi Arabia, most recently France, which has told its citizens to avoid Riyadh, Jeddah and Dammam airports.

 

Bloomberg

Euronews

Financial Times

Swiss lawmakers have backed a special lump-sum tax on systemically important banks with substantial foreign operations, applying only to UBS Group. The levy would grant access to public liquidity guarantees under Switzerland's "too big to fail" regime. Economic Affairs and Taxation Committees supported the concept Tuesday, but the vote was an in-principle endorsement, not final enactment.

 

Bloomberg Tax