Absolutely Unacceptable!

SHOCK REPORT: FEDERAL RESERVE TO BACKSTOP BANK OF AMERICA’S EUROPEAN DERIVATIVES

Bank of America (BofA) 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, reports the Daily Bail.

Why is B of A being allowed to shift these derivatives to it's depository arm? The is precisely the very thing Glass-Steagall was written to prevent. These derivatives have a potential to blow up the financial institutions and cause a hell of a lot of havoc. To allow B of A, or any other institution, to use it's depository arm as a vehicle to gamble trillions of dollars with is simply irresponsible at best.

What does this mean?

It means that the BofA’s European derivatives are now going to be “backstopped” (i.e. supported) by U.S. taxpayers. What is even more shocking is that, according to the same Daily report, Bank of America did not even seek or receive regulatory approval for this; they “just did it at the request of frightened counterparties.”

That isn't even the half of it. They are going to be able to back stop their losses with depositor money as well. This is tantamount to a criminal act. If you're still a customer with B of A you're a damned moron and deserve what you get.


Killing Zombie Banks: The Double Tap

These banks are ZOMBIE BANKS because they can't exist without the voodoo of the Fed's discount window. Time to start killing these undead, unholy creatures.

I think it's just the first step. If they are allowed then what is stopping others from doing the same.

I think it will be fun to watch how this all plays out over the next year.

reply to post by KingAtlas


Think of any zombie apocalypse movie you have ever seen.

Now imagine the zombies are all walking undead banks.

There's what will happen over the next year.

reply to post by projectvxn


Pro,
I remember reading when these instruments were first being sold that they could not be used in this fashion that they were like stocks in that if they crashed they crashed. This is something that needs to be researched. They are ,once again, going to lay this off on the tax payers and it should be stopped! I have been waiting for this other shoe to drop since the housing crash. It should have been dealt with then because it's in direct correlation to the downturn of the banks real estate investments!

Zindo

reply to post by projectvxn


Here's a related thread:

HOLY BAILOUT - Federal Reserve Now Backstopping $75 Trillion Of Bank Of America's Derivatives Trade
www.abovetopsecret.com...
by MidnightTide
started on 10/18/2011 @ 05:00 PM

reply to post by ZindoDoone


Interestingly, these people tell us a lot of things.

In the end our suspicions seem to always prove correct.

And they wonder why people are mad at them?

You know that could very well be the next resident evil movie.

Resident evil: Econopolypse

Reality is that the people would have to stop it. I think one of these Ron paul supporters should write him about this. Well i suppose anyone could write their congressman, though I doubt it would do much.

It is really hard to stop this they have alot of lobbying power.

reply to post by this_is_who_we_are


Indeed.

And the fact that they are doing it through their depositor arm is simply heresy....I don't know how else to put it.

reply to post by projectvxn


Can you say "We're screwed"?
Line two is DUCK!

Gotta watch which button I push!! DUH

reply to post by this_is_who_we_are

"It started as rioting. But right from the beginning you knew this was different. Because it was happening in small villages, market towns. And then it wasn't on the TV any more. It was in the street outside. It was coming in through your windows." - 28 Days Later...

Your 28 days later quote is very appropriate to this situation

Reinstate the GLASS-stegal act
and END THE FED!!

Bank of America USE* to be a wonderful bank.

That got too big, they plundered with giving out crappy mortgages
RE-ADJUSTABLE INTERESTS rates made BILLIONS off the economy
crashing.
They short sell the hell out of stocks,
AND NOW THEY WANT TO RAPE AND PLUNDER
THE TAX PAYER MORE by transferring money into FDIC ?

What the hell are these people thinking, it seems
THEY WANT TO TANK the economy again.

BoA thinks if it goes down it will take everyone down with them!

SPIT ON YOU BOA!!

While OWP want all their freaking debts erased they sit
blindly to the real issues. GET A CLUE

reply to post by popsmayhem


Pops,
Did you read the other link that 'This is who we are' posted? It explains exactly who is to blame! One egotistical CEO who made terrible decisions to aggrandize his own position! Also on that other link is a link to a Mr.Black who is a very knowledgeable man in finance who lays out exactly what they did and how the intend to do it!

Zindo

why is do I get the feeling that someone found a sneaky way of moving ill-gotten gains before they pull the plug and the entire house of cards collapses..

Hope people get there money out before it all collapses.. Gave up using banks long ago but do feel sorry for those still using and being bled dry by the banks..

Is this the beginning?

Or beginning of the end?

I'm thinking the second one... Stock market crash tomorrow?

reply to post by Deflagration


Probably not.

Tax payer money being put on the hook for private loses is not something Wall St. worries about. But it does paint an ugly picture for the eurozone and for the American Tax Payer, who have been bailing out Europe's stupidity for some time now.

Originally posted by Deflagration
Is this the beginning?

Or beginning of the end?

I'm thinking the second one... Stock market crash tomorrow?

Sounds like they want it to crash. All part of the old Plan. Oh, by the way...

The Man Who Predicted The Market Collapse TO THE DAY In 2008 Predicts October 24, 2011 As A Collapse
www.abovetopsecret.com...
by Drew99GT
started on 9/29/2011 @ 12:21 PM

Originally posted by KingAtlas
Resident evil: Econopolypse

Though it wouldn't make a good movie title. Doesn't really flow off the tongue..

My biggest issue is that they did this on their own. I generally lean Republican/conservative in political ideas, but this doesn't help the case of those who want less regulation. People will do just about anything for a buck, but trillions of $$$?
Previous poster, ZindoDoone, nailed it though. A lot of big problems were swept under the rug and not delt with when the bubble popped.

reply to post by this_is_who_we_are


Oh you mean Reinhart.

The guy who speaks in riddles and asks you to pay for it?

No thanks.

By the way, any one could tell you that late October is a rough time for the market.

It is interesting to note that many of the worlds most calamitous market crashes happen in late October. It's why they call it the October surprise.

It's hardly ever a surprise, however.

Edit to add:

Oct. 28th is also a date in which a lot of companies will be releasing earnings data. From what analysts are saying, it may not be a good set of numbers.

reply to post by projectvxn


Just thought I'd mention it. I'm not well versed at all in economics, and there's a lull in the doomsday department so I've taken to poking my nose in threads I'd normally not contribute to. Just hangin' out 'till October 28th. And November 9th. And the 11th...