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NYP: Sleight of hand: BofA moves dodgy Merrill derivatives to bank


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Sleight of hand: BofA moves dodgy Merrill derivatives to bank

A plan by beleaguered Bank of America to foist trillions of dollars of funky Merrill Lynch derivatives onto its depositors is raising eyebrows on Wall Street.

The rarely used move will likely save the bank millions of dollars in collateral but could put depositors’ cash behind the eight ball.

The move also brought to light fissures between the nation’s top banking regulators, the Federal Deposit Insurance Corp. and the Federal Reserve, in the wake of new regulations meant to curb the free-wheeling habits that fostered the worst crisis in a generation back in 2008.

At issue is BofA’s decision to shift what sources say is some $55 trillion in derivatives at Merrill Lynch to the retail bank unit, which houses trillions in deposits insured by the FDIC.

Critics say the move potentially imperils everyday depositors by placing their money and savings at risk should BofA run into trouble.

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Absolutely disgusting. Forcing the FDIC (and by extension the taxpayer) to bail out depositors so that derivatives investors can raid their accounts is ridiculous. Our country is ****ed until we can regulate and get a control on high finance and start actually punishing groups that do this. Unfortunately our politicians both Democrat and Republican are bought off and I can't see that changing anytime soon.

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Come on guys. There is no way the federal government is going to allow BofA to go out of business. In the long term it doesn't matter if the money comes from FDIC insurance, the Fed, or directly from our taxes.

So at what point do we see anything other than free money being handed out to investment bankers who gamble with our economy? When do we see push back? When do we see some regulation?

People have every right to be pissed off that Bank of America is willing to **** over the taxpayer.

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So at what point do we see anything other than free money being handed out to investment bankers who gamble with our economy? When do we see push back? When do we see some regulation?

People have every right to be pissed off that Bank of America is willing to **** over the taxpayer.

When essentially greater than 50% of the people up for reelection at the federal level lose their bid for reelection and aren't replaced by people that previously held an elected position at the national level.

Until than, you have a better chance of being reelected with the support of Wall Street than without it because right now, essentially every elected official at the federal level is on the side of Wall Street.

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When essentially greater than 50% of the people up for reelection at the federal level lose their bid for reelection and aren't replaced by people that previously held an elected position at the national level.

Until than, you have a better chance of being reelected with the support of Wall Street than without it because right now, essentially every elected official at the federal level is on the side of Wall Street.

Don't you think as soon as that hypothetical 50 percent gets elected Wall Street won't pressure or buy them as soon as they are in. The amount of influence that corporations and Wall Street have in this country post Citizens United is absolutely crushing.

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Don't you think as soon as that hypothetical 50 percent gets elected Wall Street won't pressure or buy them as soon as they are in. The amount of influence that corporations and Wall Street have in this country post Citizens United is absolutely crushing.

Probably and then for it do any good, they majority of them would have to lose their next election.

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Come on guys. There is no way the federal government is going to allow BofA to go out of business. In the long term it doesn't matter if the money comes from FDIC insurance, the Fed, or directly from our taxes.

This is probably true, but it's better in my mind to force BOA to actually take the loss, and Congress to actually bail them out. This is the easy way out, where nobody has to make any hard decisions and the FDIC ends up on the hook.

Apparently, the Fed likes the idea, and the FDIC doesn't (for obvious reasons). Hopefully it will get rejected.

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This will not be allowed IMO. It's the giant corrupt BoA trying to shift the non insured, highly risky and in many cases worthless, derivatives off to the federally insured FDIC and depositors.. It will not be allowed. BoA is a giant criminal enterprise IMO.

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