Bank of America begins moving $50 billion of derivatives to UK: FT
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.
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 derivates, is traditionally routed through the Dublin subsidiary, said the FT.
(Reporting by Costas Pitas; Editing by Jason Webb)