A major investment bank's
adjustment of interest rates on mortgages held by individuals is both a recognition of the depth of the financial crisis and an attempt to balance its books.
(A) adjustment of interest rates on mortgages held by individuals
is both a recognition of the depth of the financial crisis
and an attempt to balance its books -->
correct(B)
adjustment of interest rates on mortgages held by individuals
both recognize the depth of the finance crisis and attempt to balance their books --> singular subject "adjustment", plural verb "recognize"
(C) adjustment of interest rates on mortgages held by individuals is a recognition
both of the depth of the financial crisis
as well as an attempt to balance its books --> wrong idioms "both ... as well as ..."
(D) adjusting interest rates on mortgages to individuals is a recognition
both of the depth of the financial crisis
and an attempt to balance its books -->"both of ... and an attempt" not parallel
(E) adjusting interest rates on mortgages held by individuals
both recognize the depth of the financial crisis
and an attempt to balance its books -->"both recognize ... and an attempt" not parallel