BAML takes $497m FVA loss

US bank becomes thirteenth to reflect cost of uncollateralised trades

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Bank of America Merrill Lynch

Bank of America Merrill Lynch (BAML) has recognised the funding costs of uncollateralised derivatives trades, taking a $497 million loss in its fourth-quarter results, published today.

"This quarter we adopted a funding valuation adjustment (FVA) and incurred a $497 million charge against our sales and trading results as a result," said chief financial officer Bruce Thompson on the bank's investor call today.

"FVA is an adjustment to the fair value of uncollateralised derivative trades to

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