reply to post by Xagathorn
but something you should all know. Big bankers are backed by FDIC.. that means if Bank of America or etc goes down.. WE get stuck with repaying all
that bad debt they have... it means our government has taken responcibility for that bank..
The FDIC backs deposits up to $250,000 .. anything above that is not covered, and no assets/liabilities are covered under the FDIC, nor any bank
property or finances.
When a bank "goes under" so to speak, technically speaking the only people who suffer the losses are shareholders and bond holders. During
liquidation the rankings of preferred shares, common shares, and bond holders determines the amount of compensation for individual losses. Because
BoA is a massive bank, the Government would save them anyways.. but technically, it's not supposed to. The FDIC has no part in this.
.. More also on the subject of Bank of America.... you have 1 company Bank of America.. another Bank of America Corporation... The corporation is a
bunch of the big shot multi millionaire/billionaires... They own Bank of America which is FDIC, they also own Merril llync, which isnt FDIC
It's just Bank of America. They have several subsidiaries under them, but Bank of America is incorporated, there is no "Bank of America Corporation"
.. BoA already IS the corporation? BoA is backed by the FDIC, but so is Merrill Lynch (up to $250,000) for it's investment accounts. Merill Lynch is
also now BoA corporate investment acquisitions department as well, which manages the underwriting and advisories to corporate mergers and
acquisitions. A subsidiary of a corporation cannot own the corporation, it's an oxymoron since the corporation owns the subsidiary business....
The largest share holder of Bank of America is the current CEO, and he holds just under 5% of the corporation .. the largest corporate owner is State
Street Corp.. at under 5% as well. Technically speaking since State Street and Vanguard (second largest corp owner) are basically giant mutual funds,
American workers are the largest owner of BoA, if you combined all the various firms with ownership.
"Corporation" part has transferred all of the bad debt from merril llynce TOO Bank of America.. because they KNOW things are going downhill
Merrill Lynch's liabilities are maintained under ML's balance sheets.. but it doesn't matter, because BoA has to list the assets and liabilities of
it's own and it's subsidiaries .... so .. it doesn't matter where the debt is moved to, it still ends up on the master corporations books..
The only liability movement between the banks is from the banks to a subsidiary corporation called "Maiden Lane" which is a subsidiary of the Federal
Reserve.. there are Maiden Lane LLC's (5 corporations in total) that are "bad banks".
research these things yourself and find out the truth on that part.
Indeed, we could start with elementary business models.
Banks still suck, true true.. but it's best if we have a proper understanding of these matters. This way we can hate them for the right reasons.
PS: Balance sheet of the Feds
edit on 10/30/2011 by Rockpuck because: (no reason given)
10/30/2011 by Rockpuck because: (no reason given)