Bank of America 2006 Annual Report Download - page 99

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Securitize / Securitization – A process by which financial assets are sold to a special purpose entity, which then issues securities collateralized by those
underlying assets, and the return on the securities issued is based on the principal and interest cash flow of the underlying assets.
Shareholder Value Added (SVA) – Cash basis earnings on an operating basis less a charge for the use of capital.
Value-at-Risk (VAR) – A VAR model estimates a range of hypothetical scenarios to calculate a potential loss which is not expected to be exceeded with a
specified confidence level. VAR is a key statistic used to measure and manage market risk.
Variable Interest Entities (VIE) – An entity whose equity investors do not have a controlling financial interest. The entity may not have sufficient equity at risk
to finance its activities without additional subordinated financial support from third parties. The equity investors may lack the ability to make significant
decisions about the entity’s activities, or they may not absorb the losses or receive the residual returns generated by the assets and other contractual
arrangements of the VIE. A VIE must be consolidated by its primary beneficiary, if any, which is the party that will absorb the majority of the expected losses
or expected residual returns of the VIE or both.
Acronyms
AFS
Available-for-sale
AICPA
American Institute of Certified Public Accountants
ALCO
Asset and Liability Committee
ALM
Asset and liability management
EPS
Earnings per share
FASB
Financial Accounting Standards Board
FDIC
Federal Deposit and Insurance Corporation
FFIEC
Federal Financial Institutions Examination Council
FRB
Board of Governors of the Federal Reserve System
FSP
Financial Accounting Standards Board Staff Position
FTE
Fully taxable-equivalent
GAAP
Generally accepted accounting principles in the United States
OCC
Office of the Comptroller of the Currency
OCI
Other Comprehensive Income
QSPE
Qualified Special Purpose Entity
RCC
Risk and Capital Committee
SBLCs
Standby letters of credit
SEC
Securities and Exchange Commission
SPE
Special Purpose Entity
Bank of America 2006
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