Bank of America Corporation reported a significant accounting event in a Form 8-K filed with the SEC on January 8, 2024. The report detailed the impact of the global transition away from the London Interbank Offered Rate (LIBOR) to alternative reference rates such as the Bloomberg Short-Term Bank Yield Index (BSBY) and Secured Overnight Financing Rate (SOFR). Following the Bloomberg Index Services Limited's announcement on November 15, 2023, that BSBY would cease on November 15, 2024, Bank of America determined that accounting transition relief for BSBY cessation was not applicable. Consequently, the bank had to de-designate certain interest rate swaps and recognize a net non-cash, pretax charge of approximately $1.6 billion in the quarter ending December 31, 2023. This charge, resulting from the reclassification of amounts related to BSBY-indexed loans, is expected to be recognized back into interest income through 2026. The accounting adjustments reduced the bank's common equity tier 1 (CET1) ratio by eight basis points as of December 31, 2023. Bank of America will announce its fourth-quarter 2023 financial results on January 12, 2024.

Bank of America Corporation reported a significant accounting event in a Form 8-K filed with the SEC on January 8, 2024. The report detailed the impact of the global transition away from the London Interbank Offered Rate (LIBOR) to alternative reference rates such as the Bloomberg Short-Term Bank Yield Index (BSBY) and Secured Overnight Financing Rate (SOFR). Following the Bloomberg Index Services Limited's announcement on November 15, 2023, that BSBY would cease on November 15, 2024, Bank of America determined that accounting transition relief for BSBY cessation was not applicable. Consequently, the bank had to de-designate certain interest rate swaps and recognize a net non-cash, pretax charge of approximately $1.6 billion in the quarter ending December 31, 2023. This charge, resulting from the reclassification of amounts related to BSBY-indexed loans, is expected to be recognized back into interest income through 2026. The accounting adjustments reduced the bank's common equity tier 1 (CET1) ratio by eight basis points as of December 31, 2023. Bank of America will announce its fourth-quarter 2023 financial results on January 12, 2024.