BofA to Restate Profit to Adjust for Derivatives

Bank of America Corp. said it was restating financial data for the last five years to adjust for accounting treatment for certain derivative transactions.

The No. 2 U.S. bank said in a regulatory filing that the restatements would cut its earnings in 2005, 2004 and 2003 by 2.5%, 1.4% and 0.5%, respectively. For 2002 and 2001, earnings were boosted by 3.3% and 10.4%.

Banc of America Securities said some derivative transactions that had been considered “hedges” under derivative accounting rules did not in fact meet the criteria.