10-29-2011, 07:04 AM
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Let's do some business.
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Join Date: Jan 2003
Location: The dirty south.
Posts: 18,781
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Bank of America Forces Taxpayers To Cosign on 53 TRILLION In Derivatives. Too Big To Fail.
Quote:
The government?s patronage of the bank was never clearer than in recent weeks, when B of A quietly decided to move trillions of dollars (trillions, not billions) in risky Merrill Lynch derivatives contracts off Merrill?s books and onto the books of the parent/retail arm, Bank of America.
This decision was done at the behest of counterparties to those transactions, who wanted those contracts placed under the aegis of Bank of America, whose deposits are insured by the FDIC. The move was made, according to reports, so that Bank of America could avoid posting $3.3 billion in collateral to satisfy the company?s creditors. In other words, Bank of America just got You the Taxpayer to co-sign as much as $53 trillion worth of dicey derivative contracts.
The FDIC wasn?t pleased by the move, but the Fed apparently encouraged it.
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http://www.rollingstone.com/politics...-of-a-20111028
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