Bank of America Takes a Hit in Earnings Due to Support for Bloomberg’s Short-Lived Interest Rate Index

Bank of America

Bank of America Bank of America recently announced that its support for Bloomberg L.P.’s Short-Term Bank Yield Index (BSBY) will result in a $1.6 billion hit to its earnings report. However, the bank expects to recover this amount over time. BSBY was intended to replace the London Interbank Offered Rate (Libor), which was widely used in loans worldwide until a rate-rigging scandal led to its demise. Bank of America was …

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