Shafted Again. Financial Terrorists Keep Sticking It To The Public. This Time for $53 Trillion.
BofA is moving $53 trillion off of Merrill’s derivative book to its own core books and into an account, which the FDIC insures. Which means that with a stroke on a keyboard the American Taxpayer is now responsible for, and will pay for, bank/brokerage losses on these ‘investment’ gambles.
Of course, Bank of America and Merrill Lynch are insolvent. Bankrupt. Kaput. If not for fake FASB ‘mark to model’ accounting and being designated TBTF they would be out of business. My guess is this move is the first step in their ultimate demise.
Conveniently, these derivative’s are now insured and will be paid by the FDIC aka The American People upon BofA’s failure.
Who holds these derivatives? Most are held by the same financial institutions that we have been bailing out. The Federal Reserve Bank has ‘approved’ this transfer of risk from investors to the American Public. The FDIC in not happy, but is helpless and cannot overrule the private Federal Reserve Bank.
In other words, the 1% have now transferred the risk of a $53,000,000,000,000 default onto the backs of the American People.
Congress has been silent on this travesty.
If you would like to contact your Congressman, you can conveniently send a email from congress.org .
If you would like more details about this outrageous act, zero hedge is a good place to start.