Forum Post: BoA moves risky derivatives to FDIC-Insured Banks
Posted 13 years ago on Oct. 25, 2011, 11:57 a.m. EST by emeflag
(88)
from Flagstaff, AZ
This content is user submitted and not an official statement
Here is a perfect example of a too-big-to-fail financial institution abusing the system. Bank of America is moving trillions of dollars of risky derivative investments to a FDIC-Insured subsidiary. So if a FDIC-Insured Bank is going to fail as a result of a collapse of the derivatives, guess who's going to get the bill? Yes... It is you the tax payer. Don't believe me? Read these:
New York Post:
http://www.nypost.com/p/news/business/sleight_of_hand_uy96iNSbW99JHMRnbxgvfL
Bloomberg Businessweek:
OPERATION: Take our money back! http://anoncentral.tumblr.com/post/11807998878/operation-take-our-money-back-by-anonymous
About a week ago I opened an account with my local credit union and have moved most of my money out of my too-big-to-fail. I'm hoping to get everything in place so that I can walk into the bank on November 5th and close out my account for "transfer your bank day". Everyone should think about moving their savings to a credit union.
The plan appears to be to move the junk from Merrill to BofA before they spin Merrill off. Just a guess, we will see.
Hello Happybanker.... Here is an interesting quote from the Bloomberg Businessweek link:
"This condones the continuation, or perhaps escalation, of taxpayer-backed gambling on a grand scale -- and by people who aren’t very good at it. The U.S. is heading in the direction of Western Europe, where state-backed banks repeatedly bring everyone to the brink of disaster. Consider, for example, UBS AG’s recent rogue-trading episode."
Admittedly, this action is hard to wrap my head around, but if Bloomberg Businessweek thinks it is abuse then that's good enough for me.