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HOLY BAILOUT - Federal Reserve Now Backstopping $75 Trillion Of Bank Of America's Derivatives Trades
The Daily Bail ^
| Oct 18, 2011
| The Daily Bail
Posted on 10/18/2011 12:09:17 PM PDT by EasySt
HOLY BAILOUT - Federal Reserve Now Backstopping $75 Trillion Of Bank Of America's Derivatives Trades
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.
(Excerpt) Read more at dailybail.com ...
TOPICS: Business/Economy; Conspiracy; Government
KEYWORDS: bailout; ows
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More like Un-Holy Bailout.
Like he says, this is a recipe for Armageddon.
1
posted on
10/18/2011 12:09:26 PM PDT
by
EasySt
To: EasySt
Derivatives need to stand on their own.
2
posted on
10/18/2011 12:10:18 PM PDT
by
Paladin2
To: EasySt
That is tantamount to the federal government making the Solyndra stockholders whole. Does the FDIC have no nads anymore. This places the deposit insurance fund at risk.
3
posted on
10/18/2011 12:18:53 PM PDT
by
RatRipper
(I'll ride a turtle to work every day before I buy anything from Government Motors.)
To: Paladin2
"Derivatives need to stand on their own."
Not anymore, apparently.
What is this, about another $230K exposure for every man, woman and child in the country, ON TOP of however much it is that we already owe?
4
posted on
10/18/2011 12:22:00 PM PDT
by
EasySt
(2012... Sometimes you have to flush twice.)
To: EasySt
Screw the parent company. Many times have holding companies been allowed to bankrupt leaving the underlying bank minimally affected. This does a 180 on long-standing regulatory policy. If the Fed wants to backstop derivatives, find another way besides exposing the bank depositors/ FDIC to the liability.
5
posted on
10/18/2011 12:25:41 PM PDT
by
RatRipper
(I'll ride a turtle to work every day before I buy anything from Government Motors.)
To: EasySt
6
posted on
10/18/2011 12:36:31 PM PDT
by
ken21
To: RatRipper
Making the Solyndra stockholders whole would cost at most a few billion.
This is a $75 Trillion Dollar Exposure we're talking about...
I don't recall any of us giving our permission to this lawless government, or the Fed, or the Banksters to gamble our future like this... And on top of that, what's in it for us?
We're all being robbed and enslaved, at the same time.
7
posted on
10/18/2011 12:42:09 PM PDT
by
EasySt
(2012... Sometimes you have to flush twice.)
To: Paladin2
uh....by definition, “Derivatives” derive their value from....and can NOT “stand alone”!
8
posted on
10/18/2011 12:58:32 PM PDT
by
G Larry
(I dream of a day when a man is judged by the content of his character)
To: EasySt
This is why the OWS guys may get traction.
Why is B of A too big to fail?
Why can't Barney Frank (and others) be prosecuted for recklessly encouraging a housing bubble?
Why can't congress be prosecuted for enabling an illegal immigration wave?
At least the Enron and World Com guys were ostracized.
9
posted on
10/18/2011 1:00:11 PM PDT
by
cicero2k
To: G Larry
e to the u du/dx. Derivatives should boomerang on the bundler.
10
posted on
10/18/2011 1:16:12 PM PDT
by
Paladin2
To: EasySt
This is a $75 Trillion Dollar Exposure we're talking about... How do you figure that?
11
posted on
10/18/2011 1:19:33 PM PDT
by
Moonman62
(The US has become a government with a country, rather than a country with a government.)
Thank you, humblegunner
Do you use Free Republic?
Consider donating to keep the lights on, or we may all lose it
Click the Pic
12
posted on
10/18/2011 1:32:32 PM PDT
by
TheOldLady
(FReepmail me to get ON or OFF the ZOT LIGHTNING ping list)
To: Moonman62
Ummm, perhaps by reading the title as well as the opening lines?
Reading comprehension much Moonman?
13
posted on
10/18/2011 1:34:34 PM PDT
by
RoadGumby
(For God so loved the world)
To: RoadGumby
Ummm, perhaps by reading the title as well as the opening lines? Reading comprehension much Moonman? How do you calculate it, or do you trust everything you read?
14
posted on
10/18/2011 1:40:55 PM PDT
by
Moonman62
(The US has become a government with a country, rather than a country with a government.)
To: Moonman62
15
posted on
10/18/2011 1:42:57 PM PDT
by
Toddsterpatriot
(Math is hard. Harder if you're stupid.)
To: Moonman62
I heard it was $75 bajillion.
16
posted on
10/18/2011 1:44:23 PM PDT
by
Toddsterpatriot
(Math is hard. Harder if you're stupid.)
To: EasySt; Paladin2; RatRipper; ken21; G Larry; cicero2k; RoadGumby
http://www.zerohedge.com/news/bank-america-forces-depositors-backstop-its-53-trillion-derivative-book-prevent-few-clients-dep
From the article:
“...it (BOA) shifted anywhere up to the total of $53 trillion of the total derivatives it held as of June 30 (as Zero Hedge previously reported) on its books at Q2 from the Holding Company, which was downgraded last by Moody’s from A2 to Baa1 (the third-lowest investment grade rating) to its retail bank, ...”
and futher in: “the FDIC, which is the entity backstopping the deposits in a worst-case scenario, is not happy with this move for obvious reasons. Yet even it is hopeless to override the Fed, which as Bloomberg reports, “has signaled that it favors moving the derivatives to give relief to the bank holding company.” And so, once again, we see just how much more important to the Federal Reserve are interests of US taxpayers and savers, over those of the banks that effectively run the Fed.”
17
posted on
10/18/2011 1:56:47 PM PDT
by
TruthConquers
(Delendae sunt publicae scholae)
To: EasySt
Merrill was crammed down BoA’s throat. Whatever faults BoA might have, we need to look at who was rescued by whom and not let the guilty ML folks slink away unnoticed.
18
posted on
10/18/2011 2:13:48 PM PDT
by
NonValueAdded
(So much stress was put on Bush's Fault that it finally let go, magnitude 6)
bump for more commentary. ...because I don’t have enough cash to cover this.
19
posted on
10/18/2011 2:39:41 PM PDT
by
ResearchMonkey
(Holding Conservative Country in California.)
To: TruthConquers
So . . . Dodd-Frank eliminated “too big to fail” huh? ? ? ? I wasn’t holding my breath. The ICBA will be so pleased. /sarc
This is big enough to make the whole country fold. You Occupy Wall Street folks, if you were honest people and had a clue, you would have a new bogeyman . . . Ben Bernanke.
20
posted on
10/18/2011 3:05:01 PM PDT
by
RatRipper
(I'll ride a turtle to work every day before I buy anything from Government Motors.)
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