For Bank of America Corp., the No. 2 U.S. bank by assets, today's increase in overnight borrowing costs was the biggest since the Federal Open Markets Committee raised interest rates at the end of June 2004. For UBS AG in Zurich, it was the largest jump since Europe's No. 1 bank by assets said in August 2004 that it may have overestimated its value-at-risk by more than 20 percent. Both banks said their overnight borrowing costs rose 65 basis points to 6 percent. Royal Bank of Canada and Barclays Plc also said they're paying 6 percent. ``This is an old-fashioned credit crunch,'' Chris Low, the chief economist at FTN Financial in New York, said in a report today. ``This is not a small thing. A credit crunch, when the short-term credit markets seize up, is extraordinarily serious, almost always the precursor of a significant recession.''