BofA Takes $1.6 Billion Charge Tied to Libor Transition (1)

Bank of America Corp. took a roughly $1.6 billion charge tied to the finance industry’s shift away from the London Interbank Offered Rate benchmark, a cost the company said will eventually be made up as income.

The net non-cash, pretax charge was booked in the final quarter of 2023, and “presented in revenue through market making and similar activities,” it said in a filing Monday. The bank said it expects the $1.6 billion will be “recognized back” into the company’s interest income in subsequent periods through 2026.

As part of the shift away from Libor, alternatives including the Bloomberg Short-Term ...