The Commonwealth Bank of Australia (ASX: CBA) share price has fallen hard in recent weeks, but it may not yet be a bargain.
CBA share price
As can be seen above, shares in Australia's largest company have taken a hit.
Last month, the Government's regulator for money security, AUSTRAC, reported the result of its probe into the bank's practices.
It alleges the bank failed to take the necessary steps to protect against deposits which would eventually be funneled to underworld organisations.
Earlier today, the bank put out an announcement confirming the dates for court proceedings.
Previously, some media outlets had speculated that the payment for the breaches could be enormous. But CBA quickly hosed down those claims by saying:
"Ultimately, a Court will seek to ensure that, overall, any civil penalties are just and appropriate and do not exceed what is proper having regard to the totality of established contraventions."
Are CBA shares cheap?
Having fallen 10% this year, CBA shares currently change hands at around $74.
In my opinion, that is a fair price to pay for shares in the bank given its outlook over the long-term. Of course, a fine from the courts would hurt its profits. But speculating on the outcome and extent of those fines is fraught with error.
In my opinion, CBA shares would need to fall even further before they are a 'bargain'.
