Forum Post: Links: Bank of America Trying To Stick Taxpayers With A $74 Trillion Bill By Moving Derivatives Into FDIC-Insured Accounts
Posted 12 years ago on Oct. 22, 2011, 3:47 p.m. EST by BradB
(2693)
from Washington, DC
This content is user submitted and not an official statement
Bank of America Trying To Stick Taxpayers With A $74 Trillion Bill By Moving Derivatives Into FDIC-Insured Accounts
http://crooksandliars.com/susie-madrak/bank-america-trying-stick-taxpayers-7
BofA Said to Split Regulators Over Moving Merrill Derivatives to Bank Unit
To paraphrase the sentiments of another post on here:
DRUG TEST BANK OF AMERICA!
No, no! We're to busy testing the peasants of Florida. lol!
74 Trillion is more than the entirety of our nation's debt! And just ONE bank! (BEWARE TAXPAYERS)
If banks also own insurance companies - the monopoly game just started. They have a casino where they set there own winning margins by a click.
This is fraud by itself.
Its like owning a jewelry store insuring every proposed buyer that he will not pay! Easy business if not the complete community had to pay for it.
Well its nice to see people have woke up this has been out for the last 4 bloody days: http://occupywallst.org/forum/hooly-bailout-b-of-a-now-has-us-taxpayers-on-the-h/#comment-152626
Four US banks hold a staggering 95.9% of U.S. derivatives: The $600 Trillion Time Bomb That's Set to Explode
by Keith Fitz-Gerald http://www.globalresearch.ca/index.php?context=va&aid=27106
Do you want to know the real reason banks aren't lending and the PIIGS [Portugal, Ireland, Italy, Greece, Spain] have control of the barnyard in Europe?
It's because risk in the $600 trillion derivatives market isn't evening out. To the contrary, it's growing increasingly concentrated among a select few banks, especially here in the United States.
In 2009, five banks held 80% of derivatives in America. Now, just four banks hold a staggering 95.9% of U.S. derivatives, according to a recent report from the Office of the Currency Comptroller.
The four banks in question: JPMorgan Chase & Co. (NYSE: JPM), Citigroup Inc. (NYSE: C), Bank of America Corp. (NYSE: BAC) and Goldman Sachs Group Inc. (NYSE: GS).
Derivatives played a crucial role in bringing down the global economy, so you would think that the world's top policymakers would have reined these things in by now - but they haven't.
Instead of attacking the problem, regulators have let it spiral out of control, and the result is a $600 trillion time bomb called the derivatives market.
Think I'm exaggerating?
The notional value of the world's derivatives actually is estimated at more than $600 trillion. Notional value, of course, is the total value of a leveraged position's assets. This distinction is necessary because when you're talking about leveraged assets like options and derivatives, a little bit of money can control a disproportionately large position that may be as much as 5, 10, 30, or, in extreme cases, 100 times greater than investments that could be funded only in cash instruments.
The world's gross domestic product (GDP) is only about $65 trillion, or roughly 10.83% of the worldwide value of the global derivatives market, according to The Economist. So there is literally not enough money on the planet to backstop the banks trading these things if they run into trouble.
Keith Fitz-Gerald is Chief Investment Strategist, Money Morning
Here's a youtube video of Cenk Uygur talking about this:
http://youtu.be/N_XtXhiekQk
Wow 74 trillion dollars- I think thats more money than what exists on Earth righ now
yet we're the ones that aren't supposed to break the money sysytem
Who gets the $74T if the derivatives fall due? How much do We The People suffer if the derivatives are canceled? What is the original stake on these bets?
The federally insured deposits on the banking side are now at risk because of the existence of these derivatives as part of BOA instead of Merrill.
Should BOA fail, the 1 trillion in banking deposits that it holds for customers could potentially be wiped out and the FDIC on the hook to pay out to depositors.
Should be stuck to the top, this post.
http://therevolutionarytruth.tumblr.com/