Posted 10 years ago on Oct. 19, 2011, 12:50 p.m. EST by clif
This content is user submitted and not an official statement
All over the net Bank of 'america' has moved its EU derivatives over to where it can trade them to the Federal Reserve (not part of federal govt, no reserves and not a bank) so that american taxpayers can be put on the hook for more than 11 times the gross domestic production of the PLANET!
a couple of sources for you...
then some human speak about what it means http://www.rumormillnews.com/cgi-bin/forum.cgi?read=218844
from article at site....a few choice words HOLY BAILOUT - Federal Reserve Now Backstopping $75 Trillion Of Bank Of America's Derivatives Trades
This story from Bloomberg just hit the wires this morning. 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.
This means that the investment bank's European derivatives exposure is now backstopped by U.S. taxpayers. Bank of America didn't get regulatory approval to do this, they just did it at the request of frightened counterparties. Now the Fed and the FDIC are fighting as to whether this was sound. The Fed wants to "give relief" to the bank holding company, which is under heavy pressure.