Hello There, Guest! Register


Login or Register to remove all advertising



1 user browsing this thread: (0 members, and 1 guest).

Post Reply 
Taxpayers Now Insure Bank of America Gambling
Author Message
mark-in-dallas
Offline
Administrator




Joined: Aug 2009
Sex: Male
Posts: 4,022



Post: #1
Taxpayers Now Insure Bank of America Gambling
10-24-2011 8:10 AM

Unfucking believable!

Bank of America's latest stunt is shifting derivatives in its Merrill investment-banking unit to its depository arm, which has access to the Fed discount window and is protected by the FDIC.

Why is B of A being allowed to shift these derivatives to it's depository arm? The is precisely the very thing Glass-Steagall was written to prevent.

And why would we want to prevent banks from doing so? Derivatives have a potential to blow up financial institutions and cause a hell of a lot of havoc. To allow BoA, or any other institution, to use it's depository arm as a vehicle to gamble trillions of dollars with is simply irresponsible at best.

Why now? how about probably because BoA's credit rating was just lowered another 2 points and the investors were worried and aksed them to safeguard their money.

So, what does this mean to you? It means that BoA's European derivatives are now going to be "backstopped" (i.e. supported) by U.S. taxpayers.

Just what I always wanted: to be the insurance company underwriting bad banking investments. Eek Ireful1

Link to Bloomberg Article

Nobody changes until the pain of staying the same becomes greater than the pain of change....
10-24-2011 8:10 AM
Visit this user's website Find all posts by this user Quote this message in a reply
Login or register to remove all advertising


Share This Thread
Post Reply 


Possibly Related Threads...
Thread: Author Replies: Views: Last Post
  Bank Economics for Dummies mark-in-dallas 6 2,480 10-03-2012 8:30 PM
Last Post: TwistedOstrich
  Be a good Citizen, Open a New Bank Account mark-in-dallas 17 5,224 05-18-2010 12:07 PM
Last Post: Mtnjim

Forum Jump:


Login or Register to remove all advertising

Current time: 10-23-2018, 7:07 AM
Contact Us Home Return to Content Lite (Archive) Mode RSS Syndication Forum Disclaimer