So the looting continues...and continues...and continues.
Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation.
I need to take a DEEP breath...
The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.
So, the banks think that they can just dump all their derivatives exposures to the tune of hundreds of TRILLIONS on the taxpayers when they go belly up and Ben Bernanke's Federal Reserve agrees! Who cares about what the FDIC thinks, right? And who cares about regulations? Or morals...and ethics...and humanity...and our sovereign rights? We're talking about Bank of America and JP Morgan! And Citi! And Goldman! You know, JOB CREATORS!
Wow...Just...Wow...
This is a direct transfer of risk to the taxpayer done by the bank without approval by regulators and without public input.
More from the Daily Bail:
What this means for you is that when Europe finally implodes and banks fail, U.S. taxpayers will hold the bag for trillions in CDS insurance contracts sold by Bank of America and JP Morgan. Even worse, the total exposure is unknown because Wall Street successfully lobbied during Dodd-Frank passage so that no central exchange would exist keeping track of net derivative exposure.
So. Are you outraged yet? Why are we paying taxes? Can we just stop paying taxes? I don't know about you but I'm not paying for this shit!