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Forum Post: HOLY BAILOUT – Federal Reserve Now Backstopping $75 Trillion Of Bank Of America’s Derivatives Trades

Posted 12 years ago on Oct. 18, 2011, 9:03 p.m. EST by MonetizingDiscontent (1257)
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(Max Keiser) "This is a direct transfer of risk to the taxpayer done by the bank without approval by regulators and without public input." http://maxkeiser.com/2011/10/18/this-is-a-direct-transfer-of-risk-to-the-taxpayer-done-by-the-bank-without-approval-by-regulators-and-without-public-input/

HOLY BAILOUT – Federal Reserve Now Backstopping $75 Trillion Of Bank Of America’s Derivatives Trades http://dailybail.com/home/holy-bailout-federal-reserve-now-backstopping-75-trillion-of.html

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. http://www.bloomberg.com/news/2011-10-18/bofa-said-to-split-regulators-over-moving-merrill-derivatives-to-bank-unit.html

3 Comments

3 Comments


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[-] 1 points by sfcharles (41) from San Francisco, CA 12 years ago

Holy Shit!

The derivatives are credit default swaps on the Eurozone banks. That means they are insurance on those banks. If the Eurozone banks start to collapse, we are screwed, because now the Fed is allowing BofA to put us on the hook for the insurance payments if they default!

And, it really is 75 trillion! Here's the article at Bloomberg:

http://www.bloomberg.com/news/2011-10-18/bofa-said-to-split-regulators-over-moving-merrill-derivatives-to-bank-unit.html

[-] 1 points by sudoname (1001) from Berkeley, CA 12 years ago

Sounds like the same bankster crap that's been going on since the Rothschilds. The banksters like to say "f u" to our faces while they screw us over. They are not human - they are as close to pure evil as you can get.

[-] 1 points by MarcTwane (76) 12 years ago

I don't know if i can believe Bank of America holds that much market share. I haven't read the articles yet, but I remember during the financial meltdown in 2007, the housing industry accounted for on $12.9 trillion, or something to that affect.