Compliance

11:02 AM
Reuters
Reuters
News
Connect Directly
RSS
E-Mail
50%
50%

Bank of America Begins Moving $50 Billion of Derivatives to U.K.

Bank of America has begun moving $50 billion of derivatives out of its Irish-based operations into its British subsidiary, The Financial Times reported on its website on Sunday, citing people close to the operation.

Bank of America has begun moving $50 billion of derivatives out of its Irish-based operations into its British subsidiary, The Financial Times reported on its website on Sunday, citing people close to the operation.

The move will allow the world's number 10 bank by assets to benefit from tax breaks stemming from accumulated losses in its UK business, the FT said.

According to the Financial Times, bankers said Irish officials were uncomfortable with the scale of the business which posed a theoretical risk to Irish taxpayers.

UK regulators were also keen to have closer control of the European operations of the bank which has its operational management based in London, said the FT.

A large chunk of Bank of America's European business, including cash management, corporate lending and derivatives, is traditionally routed through the Dublin subsidiary, said the FT. Bank of America was unavailable for immediate comment.

Copyright 2012 by Reuters. All rights reserved.

Comment  | 
Print  | 
More Insights
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology Oct. 14, 2014
Bank Systems & Technology's new Must Reads is a compendium of our best recent coverage of customer analytics. Learn what big data means for banks, meet Wells Fargo CDO Charles Thomas, find out how to connect with your Gen Y customers, and more.
Slideshows
Video
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.