BoA to reclassify
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The bank has contravened Financial Accounting Standards Board rules by wrongly classifying FX and interest rate derivatives as qualifying for 'short cut' accounting. This would only require final values of derivatives to be calculated instead of having to work out the mark-to-market position of the instruments at each accounting period. The problem, discovered following an internal review, caused the bank to underestimate its income over the period by $345 million.
BoA could now face legal
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