Financial stocks came under pressure on Monday amid a report that a number of global banks moved allegedly illicit funds over the past two decades despite warnings from U.S. officials.
Shares of Deutsche Bank dropped nearly 8%, while JPMorgan fell almost 5% in premarket trading. Goldman Sachs, Citigroup and Bank of New York Mellon all traded at least 2.5% lower. The sell-off was triggered by a new investigation by BuzzFeed and the International Consortium of Investigative Journalists (ICIJ) that found the banks’ internal compliance officers flagged a total of more than $2 trillion in transactions between 1999 and 2017 as possible money laundering or other criminal activity. The report cited confidential documents submitted by banks to the U.S. government.