Bank of America has exited Chicago's plan to sell overdue parking debt, altering the city's approach to managing delinquent accounts. The withdrawal marks a shift in the financial arrangement aimed at addressing outstanding liabilities. The decision underscores the complexities involved in monetizing municipal debt.

The proposed sale was intended to convert overdue parking fines into a more liquid asset for the city. Bank of America's exit follows a review of the plan's structure and potential risks. The city had sought to leverage the debt to improve cash flow and reduce administrative burdens associated with collections.

Chicago's parking debt has been a persistent challenge, with significant amounts remaining unpaid over time. The sale plan was part of broader efforts to address fiscal pressures. The withdrawal by Bank of America may prompt the city to explore alternative strategies for debt recovery.

The table below outlines key details of the proposed arrangement:

The city has not yet announced a replacement partner or revised timeline for the debt sale. The focus remains on resolving the outstanding parking liabilities while minimizing financial impact. Stakeholders will monitor for further developments on Chicago's debt management strategy.

Bank of America Corp. reported a 27% increase in second-quarter fiscal 2026 net income to $9.1 billion, driven by record trading revenue and robust investment banking fees. Earnings per share rose 34% to $1.21, while revenue increased 15% year over year to $31.6 billion. The bank's performance was supported by broad-based growth across all business segments, improved operating leverage, and a resilient US economy. RBC Capital Markets analyst Gerard Cassidy maintained an Outperform rating and raised the price target from $59 to $65, noting that the company's core low-cost deposit base is expected to drive healthy growth over the next 12 months as the yield curve steepens.

Segment Performance

Every business segment contributed to year-over-year growth, with each generating positive operating leverage and improving efficiency ratios. Consumer Banking net income increased 10% to $3.3 billion, while Global Wealth and Investment Management surged 42% to $1.4 billion. Global Banking net income grew 20% to $2.05 billion, and Global Markets net income jumped 70% to $2.7 billion. Average deposits rose 2.5% to $2.02 trillion, marking the 12th consecutive quarter of growth, while average loan and lease balances increased 8% to $1.22 trillion.

Trading and Dealmaking Surge

Sales and trading revenue increased 33% to a record $7.2 billion, with Equities delivering a record $3.6 billion and Fixed Income, Currencies, and Commodities (FICC) generating $3.5 billion, its strongest quarter in over a decade. Investment banking fees jumped 50% to $2.1 billion, reflecting strength in debt underwriting, advisory, and equity underwriting. Management highlighted that an AI-driven capital spending cycle supported equity issuance and M&A activity.

Balance Sheet and Capital Return

The bank’s efficiency ratio improved to 59% from 62.61% a year ago, while return on tangible common equity reached 17%. Its Common Equity Tier 1 (CET1) ratio stood at 11.2%, with Tier 1 common equity growing to nearly $202 billion. Book value per share increased to $39.34. The company returned $8 billion to shareholders through dividends and share repurchases during the quarter. Management noted that credit quality remains stable, with criticized commercial exposures declining by $2.3 billion from the prior quarter. Cassidy expects credit quality results to be "resilient" over the next 12 months, given the de-risking of its balance sheet over the last 15 years.