BAML takes $497m FVA loss

US bank becomes thirteenth to reflect cost of uncollateralised trades

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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