#1 Bank Of America "Screw You Taxpayers"10-19-2011, 11:37 AM
Once again the plans are in the works for government and the banks to give a big "up yours" to the American Taxpayer.
Bank of America Deathwatch: Moves Risky Derivatives from Holding Company to Taxpayer-Backstopped Depository
Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation…Remember the effect of the 2005 bankruptcy law revisions: derivatives counterparties are first in line, they get to grab assets first and leave everyone else to scramble for crumbs. So this move amounts to a direct transfer from derivatives counterparties of Merrill to the taxpayer, via the FDIC,This move paves the way for another TARP-style shakedown of taxpayers, this time to save depositorsBank customer initiates a swap position with Bank. In doing so they intentionally accept the credit risk of the institution they trade with.
Later they get antsy about perhaps not getting paid. Bank then shifts that risk to a place where people who deposited their money and had no part of this transaction wind up backstopping it.
This effectively makes the depositor the “guarantor” of the swap ex-post-facto.
That the regulators are allowing this is an outrage.
If you’re a Bank of America customer and continue to be one you deserve whatever you get down the line, whether it comes in the form of higher fees and costs assessed upon you or something worse.
And people wonder why there is a tea party?Gun Control: The theory that a woman found dead in an alley, raped and strangled with her panty hose, is somehow morally superior to a woman explaining to police how her attacker got that fatal bullet wound - Unknown
The problem is Empty People, Not Loaded Guns - Linda Schrock Taylor
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