The Federal Reserve and Bank of America Initiate a Coup to Dump Hundreds of Billions

Discussion in 'Current Events' started by Robodoon, Oct 18, 2011.

  1. Robodoon

    Robodoon Banned

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    The Federal Reserve and Bank of America Initiate a Coup to Dump Hundreds of Billions of Dollars of Losses on the American Taxpayer

    Bloomberg reports that Bank of America is dumping derivatives onto a subsidiary which is insured by the government – i.e. taxpayers.

    Yves Smith notes:

    If you have any doubt that Bank of America is going down, this development should settle it …. Both [professor of economics and law, and former head S&L prosecutor] Bill Black (who I interviewed just now) and I see this as a desperate move by Bank of America’s management, a de facto admission that they know the bank is in serious trouble.

    The short form via Bloomberg:

    Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation…

    Bank of America’s holding company — the parent of both the retail bank and the Merrill Lynch securities unit — held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. About $53 trillion, or 71 percent, were within Bank of America NA, according to the data, which represent the notional values of the trades.

    That compares with JPMorgan’s deposit-taking entity, JPMorgan Chase Bank NA, which contained 99 percent of the New York-based firm’s $79 trillion of notional derivatives, the OCC data show.

    Now you would expect this move to be driven by adverse selection, that it, that BofA would move its WORST derivatives, that is, the ones that were riskiest or otherwise had high collateral posting requirements, to the sub. Bill Black confirmed that even though the details were sketchy, this is precisely what took place. Continued

    Comment: Really folks its us vs them. The Creation of the Federal Reserve bank was the staple of our enemies of old, our founding fathers fought them at our birth (Rothschild)

    Please remember evil eats its own.

    As in older times, our founding, when the evil bankers bust their bubbles, they expect we the people to pay. And they do... we the people get to pay off the gamblers....who can't live on a billion dollars...well they are to suffer, so they go after the ones living off nuts and cheese... cheese if they are lucky. And they laugh about it. And call us fools for believing their lies against us.
     

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