Yesterday, I diaried this story. A fellow Kossack barry s did, too, but I did not see a wide discussion over this EXTREMELY IMPORTANT story. If nothing else, I just want to spread this as far and wide as possible and warn everybody of an impending white collar crime of the century.
If you're ready to be outraged beyond belief, here is the story:
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.
In short, Bank of America is shifting their 75 TRILLION dollars of exposure to derivatives to the taxpayer.
Did that sink in?
Bank of America's 75 TRILLION dollars worth of exposure to derivatives is now backed by you and me.
They didn't get regulatory approval to do this. No public debate. No referendum. They just. Went and fucking did it. Told you and me, "Hey you suckers. If we lose this (ginormous) bet, YOU'RE PAYING!" And they have the Fed's support. The FDIC objects but let's face it. The FDIC is not overriding Ben Bernanke and Barack Obama. Not gonna happen. And you know what? JP Morgan wants in on the fun, too, with their own 79 TRILLION dollars worth of exposure to derivatives.
So, between Bank of America and JP Morgan alone, we're looking at 154 TRILLION DOLLARS of exposure to toxic derivatives. And that's just two banks. What about the others?
This isn't even gang raping of the public anymore. This is murder. Because the banks are taking out hundreds of trillions of dollars worth of life insurance policies against us right now. For absolutely no cost to them what so ever. With the Fed's blessing! If this isn't intent to kill the public in order to save the TBTF banks, I don't know what is.
There will be blood in the streets. Pitted against one another, people will die. Please spread the word.
A few commenters are objecting to my "blood in the streets" comment thinking that I'm calling for violence. I can see where my wording might have given that impression but that's now what I'm saying. I'm merely raising the very REAL possibility of violence and consequences as a result of their actions. If something triggers another financial crisis and taxpayers find out THEN about what BofA and other TBTF did, I don't believe there will be peace in America. We're talking about TRILLIONS here. Hundreds of trillions.
Some say the FDIC only insures up to $250,000. Really? So all TBTF banks received up to $250,000 after the 2008 crisis? If you haven't been paying attention, rules, laws and regulations are FOR US and NOT THEM.
12:35 PM PT: PPS: Why are people attacking ME? This diary isn't about me. It's about ALL OF US. Democrats. Republicans. Obamabots. Paulbots. Whatever. If you don't have anything to add to the story, just move along. Don't make me a sideshow to divert people's attention away from the story which is that Banks are again colluding with the Fed to rob Americans for generations. Stick to the issue, please!
2:18 PM PT: For more information on this story, please read a fellow Kossack's diary here:
Thanks to everyone who took the time to read and comment. After defending myself rather than discussing the merits of this important story for the most part, I'm tired and have, uh, work to get back to. I know that some of you take offense to my language as well as my evolving political beliefs. That's fine. But this shouldn't be about me or my evolving views. I once mentioned in someone else's diary that I, fortunately, have not been victimized (yet) by our current political and financial system and remain sound financially. But I have a stake in this matter like everyone else regardless of their political ideology. Even if I become a billionaire, I will always believe that our tax dollars should go to the greater good of all Americans, not just those who can afford the most lobbyists. Right now, too much of our tax dollars are wasted on senseless wars and subsidizing corporations. This I cannot stand.
I think what's happening right now, even the OWS movement, isn't about left or right. It's about the status quo system that transfers wealth from the bottom 99% to the top 1%. And the last time I checked, our country isn't 99% left or right. But when we try to make this a left or right issue, we're effectively dividing ourselves and getting conquered by what George Carlin so accurately called The Owners of our country. That's enough rambling from me today.
My sincere apologies to those who are offended, even the ones who impugned, cast doubt and derided me to no end. You may think I'm being facetious but I sincerely understand your position because I was just like you not long ago. So even if you think I'm a troll, please do take the time to share news stories like this one and help raise awareness. You don't have to rec my diary to do that. Socializing losses and privatizing gains. You don't have to be Paul Krugman to understand that that's just wrong and do something about it. And that's all I ask.
Have a good day and if you have the time, move your money out of big banks. And keep demanding answers. Peace.