Wednesday, October 19, 2011

Bank of America's Socialize the Risk and Reap the Reward Business Model

Click here to access article by Robert Oak from The Economic Populist.
By moving toxic assets, i.e. derivatives, into a FDIC insured subsidiary, gives BoA's Merrill derivative holdings indirect access to the Federal Reserve discount window and also if the bank fails where the derivatives are now located, the FDIC is required to pay depositors through their insurance guarantee. It appears from Bloomberg's report that $53 trillion of BoA's derivatives are being tied into depositors*, which implies the Federal Reserve and the U.S. taxpayer have the potential to be on the hook.
This latest bankster crime against the US public is being reported on numerous websites.