Bank of America's bonus pool for investment bankers will probably rise 10% for last year, a source familiar with the matter told Reuters.

A sharp rise in rates since the end of the third quarter widened losses on bank securities portfolio and could become an investor issue again when banks start reporting their fourth-quarter results in the next week.

Bank of America has the largest unrealized losses in the banking industry and could be a focus of investor attention.

Bank of America investors expect higher dividends and a 10% bonus increase for investment bankers amid a surge in deal activity.