HOLY BAILOUT - Fed Reserve Backstopping $75 Trillion Of Bank Of America's Derivatives

[mister_doodi]

Quote from newwurldmn:


BAC would have been fine if they didn't buy Countrywide and Merril (both of which were not products of the repeal of Glass Steagal).

BAC might be a $1 stock now if they didn't buy Merril.

 

[hayman]

I don't even hear a sniff of this on CNBC over the last couple of days. One more reason why I hate those jaded idiots.

 

[trefoil]

As I posted over in a thread on Economics last night, the Fed needs to be eliminated and its regulatory functions given to the FDIC. Further evidence from the article cited at the top of this thread:

The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people.

One knows what it's doing, the other demonstrates over and over and over that it doesn't.

 

[stock777]

Quote from trade2live:

yeah Bernanke is insane, he is a financial George Bush (his former boss) , a criminal by incompetence

u just figured this out?

 

[Rickshaw Man]

Quote from krazykarl:

It's because not everyone is suckered-in by sensationalistic media headlines and that maybe, just maybe, there are people out there that know more about the situation than you do.

If were lucky maybe the same fiscal flunkies who oversaw the last situation.

 

[the1]

Not a chance. If/when they get this bailout they'll pay themselves huge bonuses the way GS did, all courtesy of the tax payer. Welcome to America. Bend over so you can get fucked by the banking cartel.

Quote from bullmarket79:

[BWall streets goose is cooked, the days of easy living are over for them. [/B]

 

[jprad]

Quote from trefoil:

As I posted over in a thread on Economics last night, the Fed needs to be eliminated and its regulatory functions given to the FDIC. Further evidence from the article cited at the top of this thread:

One knows what it's doing, the other demonstrates over and over and over that it doesn't.

You need to dig a little deeper.

JPM is doing the same thing with their $79TN, moving it from their bank holding company to their FDIC insured depository.

Guess what?

The FDIC is stone-cold, dead silent on that move...

 

[S2007S]

Quote from hayman:

I don't even hear a sniff of this on CNBC over the last couple of days. One more reason why I hate those jaded idiots.

Agreed, funny how its not even mentioned on the biggest financial network on television....don't worry in due time it will be talked about non stop. They are trying to ignore it as long as they can until it eventually happens and everyone has to make word of it.

 

[athlonmank8]

Unreal.......

Have fun guys.....down the sh*tter they go. hit a new high a few days back

http://www.bloomberg.com/apps/quote?ticker=CBAC1U5:IND

 

[AKUMATOTENSHI]

Quote from THE-BEAKER:

SCUM - UTTER SCUM


This story from Bloomberg just hit the wires this morning. Bank of America 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.

This means that the investment bank's European derivatives exposure is now backstopped by U.S. taxpayers. Bank of America didn't get regulatory approval to do this, they just did it at the request of frightened counterparties. Now the Fed and the FDIC are fighting as to whether this was sound. The Fed wants to "give relief" to the bank holding company, which is under heavy pressure.

This is a direct transfer of risk to the taxpayer done by the bank without approval by regulators and without public input. You will also read below that JP Morgan is apparently doing the same thing with $79 trillion of notional derivatives guaranteed by the FDIC and Federal Reserve.

What this means for you is that when Europe finally implodes and banks fail, U.S. taxpayers will hold the bag for trillions in CDS insurance contracts sold by Bank of America and JP Morgan. Even worse, the total exposure is unknown because Wall Street successfully lobbied during Dodd-Frank passage so that no central exchange would exist keeping track of net derivative exposure.

This is a recipe for Armageddon. Bernanke is absolutely insane. No wonder Geithner has been hopping all over Europe begging and cajoling leaders to put together a massive bailout of troubled banks. His worst nightmare is Eurozone bank defaults leading to the collapse of the large U.S. banks who have been happily selling default insurance on European banks since the crisis began.

FULL STORY


http://dailybail.com/home/holy-bailout-federal-reserve-now-backstopping-75-trillion-of.html

WTF!!!!!

Looking for a flight out of here ASAP. This could be the swan song folks.