Forum Post: Cashless Society: Bank of America REFUSES CASH for Mortgage Payment /// FDIC To Cover Losses On $75 Trillion Bank of America Derivative Bets
Posted 1 year ago on Jan. 13, 2012, 8:52 a.m. EST by MonetizingDiscontent
This content is user submitted and not an official statement
Cashless Society: Bank of America Refuses Cash for Mortgage Payment
February 5, 2012
In another example that we appear to be rapidly moving into a cashless society, Bank of America in California refused to accept cash for a mortgage payment. The manager of the bank said it was against their policy to accept legal tender physical currency (aka U.S. dollars) as payment for BoA mortgages.
The customer attempting to pay his mortgage, firefighter Robert Somerton, recorded the ordeal in Lakeport branch which made the bank manager so upset that he called the police. The police detained Somerton for a half hour before releasing him with a warning that he may never return to that BoA branch or he’ll be arrested.
“I was shocked. I had no idea this would happen. Since when does a bank not accept cash?” Robert wrote after the affair.
Video 1 of 4 Inside Bank of America DOES NOT accept U.S. DOLLARS as payment on mortgages in
Somerton and his wife, Ana, are victims of fraudclosure... http://ohiofraudclosure.blogspot.com/2011/07/not-just-another-foreclosure-story.html ...and have become the activists known asRob and Ana vs Bank of America... http://www.facebook.com/RobAnaVsBofA ...At the height of their foreclosure struggle, they made news... http://ampedstatus.org/fraudclosure-watch-firefighter-to-demolish-home-before-bank-of-america-forecloses-after-deceptive-scheme/ ...when they threatened to bulldoze their home leaving Bank of America a “smoldering pile of debris.”
(((Watch the rest of the exchange Here))): http://www.youtube.com/user/rpsomerton
Judge Rules Against Bank Of America For Harassment
Judge Says Widow Harassed, Collection Firm Was Hired by Bank of America to Pursue Dead Man's Debts
-Dec. 28, 2011- By JESSICA SILVER-GREENBERG
(WallStreetJournal) Bank of America Corp. and a debt collector it hired to go after deceased customers' debts violated state law by repeatedly calling a Florida woman about paying the credit-card bill of her late husband, a Florida state-court judge ruled this month.
Judge Keith R. Kyle in Lee County, Fla., found that collection attempts by West Asset Management, an Omaha, Neb., firm working on behalf of Bank of America, amounted to harassment.
The ruling clears the way for the plaintiff to get punitive damages from the collector, a unit of West Corp., and Bank of America, which is the second largest U.S. bank by deposits. A civil jury will determine the size of the award next year.
The companies declined to comment on the latest ruling. Judge Kyle didn't return calls for comment.
The case could set a precedent across the U.S. and discourage lenders from using collectors to get money from surviving relatives on debts left behind by the deceased, according to other state-court judges.
Bank of America and other major U.S. lenders hand over accounts of the deceased to firms specializing in death-debt collection. The collection firms then zero in on family members who they think might agree to pay some of what the dead person owed even though they have no legal obligation to do so.
-Dec. 28, 2011-
FDIC To Cover Losses On $75 Trillion Bank of America Derivative Bets
-October 20, 2011-
Potential losses on Bank of America’s massive $75 trillion book of risky derivative contracts has just been dumped onto the FDIC by the Federal Reserve.
Derivatives, once described by Warren Buffet as “financial weapons of mass destruction” are complex contracts entered into for speculation or to hedge risks linked to a wide variety of other (derivative) financial instruments such as currencies, commodities, interest rates, bonds, etc. In testimony to the Financial Crisis Inquiry Commission in March 2011, Buffett warned that the trillions in derivatives held by major banking institutions could be “disruptive to the whole financial system” and that the risks were “virtually unmanageable......”
Bill Black: "BAC, has directed troubled financial derivatives from its Merrill Lynch subsidiary to federally insured bank Bank of America making private risk public""
Bank Of America Derivatives Timebomb Shows System Is Corrupt To The Core
(PBL) The Federal Reserve recently allowed Bank of America to move its massive derivative positions from the bank holding company to its banking subsidiary which is an FDIC insured depository institution. By allowing this transfer, the Federal Reserve has allowed Bank of America to shift the risk of loss on speculative derivative contracts from the non-bank affiliate. A failure of Bank of America could result in huge losses for the FDIC which would ultimately be passed on to the taxpayers.
The most noteworthy aspects of this remarkable event include the following:
(1) The disclosure of the derivatives transfer to Bank of America’s FDIC insured depository was apparently leaked by the FDIC which opposed the move due to the huge amount of risk being transfered to the FDIC and bank depositors.
(2) In allowing the transfer, the Federal Reserve apparently violated Section 23A of the Federal Reserve Act which was supposed to keep the risks of investment banking activities at the bank holding company level.
(3) The notional value of the Bank of America derivative contracts is $75 trillion. The request for the derivatives transfer was initiated by counterparties of the contracts with Bank of America who were alarmed over the credit downgrade of Bank of America.
(4) The transfer of the derivatives from Bank of America’s holding company to the FDIC insured depository institution has received remarkably little mainstream press coverage. The quick approval by regulators at the Federal Reserve to protect the bank holding company indicates that the Federal Reserve is corrupt to the core and more interested in protecting the banks than the American public.
Bill Black, a former banking regulator, who exposed the corruption of banks and politicians during the savings and loan crisis, harshly criticizes the Fed’s actions in his recent article “Bank of America’s Death Rattle“
Now here’s the really bad news. First, this transfer is a superb “natural experiment” that tests one of the most important questions central to the health of our financial system. Does the Fed represent and vigorously protect the interests of the people or the systemically dangerous institutions (SDIs) – the largest 20 banks? We have run a real world test. The sad fact is that very few Americans will be surprised that the Fed represented the interests of the SDIs even though they were directly contrary to the interests of the nation. The Fed’s constant demands for (and celebration of) “independence” from democratic government, combined with slavish dependence on and service to the CEOs of the SDIs has gone beyond scandal to the point of farce. I suggest organized “laugh ins” whenever Fed spokespersons prate about their “independence.”