BofA (BAC) to Incur $1.6B Charge in Q4 Tied to Libor Transition

Bank of America (BAC) will incur a net non-cash pre-tax charge of $1.6 billion in the fourth quarter of 2023 as it phases out the use of the Bloomberg Short-Term Bank Yield Index (BSBY). The company stated this in a filing with the Securities and Exchange Commission (“SEC”).The charge will be presented in “revenue through market making and similar activities.”BofA has been using BSBY in various lending agreements as an alternative to the London Interbank Offered Rate (LIBOR) since 2021. However, in November ...