BAML takes $497m FVA loss
US bank becomes thirteenth to reflect cost of uncollateralised trades
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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