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As of late 2023, Bank of America (BAC) was among the top four U.S. banks holding a combined total of over $168 trillion in derivatives.

Total Derivative Exposure: Based on reports from late 2023, the four largest U.S. banks, including Bank of America, held roughly 87% of all derivatives at U.S. federally-insured institutions.

Derivative Transfer: Bank of America’s resolution plan anticipates transferring derivative guarantees to a new, solvent subsidiary (NewCo) funded by existing assets ("NB Holdings") pursuant to a secured support agreement.
Unwound Portfolios: The Federal Reserve and FDIC have noted "shortcomings" in BAC's 2023/2024 plans regarding its ability to quickly unwind its massive derivatives portfolio.
Systemic Risk Exception: While taxpayer bailouts are not legally authorized, in a catastrophic scenario, the Treasury Secretary can invoke a "systemic risk exception," allowing the FDIC to cover uninsured liabilities (like derivatives) to stabilize the system