Bank of America Corp. said in a securities filing today that a British tax on bank bonuses could cost the company about $465 million in the second quarter of this year.
The United Kingdom in April enacted a one-time 50 percent tax on bonuses paid between December 9 and April 5. The scope of the tax is still uncertain, the bank said, but it expects to record a compensation expense in the period ended June 30.
The Charlotte bank’s quarterly filing also warned that the European Union financial crisis “may spread and adversely affect global and U.S. capital markets.”
Bank of America said it has $193 million in exposure to Greece’s government-backed debt, although it has $205 million in credit default protection -- a form of insurance -- on that debt. It has an additional $1.1 billion in exposure to non-government-backed debt in Greece, essentially loans to corporations and individuals in the country.
Read the complete story at charlotteobserver.com