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Friday, October 21, 2011

BANK OF AMERICA'S DEATH RATTLE

William Black put hundreds of bankers in jail during the S&L Crisis. He knows fraud when he sees it. Bank of America has just put the American taxpayer on the hook for billions of future losses when Bank of America blows up. You can’t read this story and not realize that the people at OWS are right.

Not with a Bang, but a Whimper: Bank of America’s Death Rattle

By William K. Black
Bob Ivry, Hugh Son and Christine Harper have written an article that needs to be read by everyone interested in the financial crisis. The article (available here) is entitled: BofA Said to Split Regulators Over Moving Merrill Derivatives to Bank Unit. The thrust of their story is that Bank of America’s holding company, BAC, has directed the transfer of a large number of troubled financial derivatives from its Merrill Lynch subsidiary to the federally insured bank Bank of America (BofA). The story reports that the Federal Reserve supported the transfer and the Federal Deposit Insurance Corporation (FDIC) opposed it. Yves Smith of Naked Capitalism has written an appropriately blistering attack on this outrageous action, which puts the public at substantially increased risk of loss.

I write to add some context, point out additional areas of inappropriate actions, and add a regulatory perspective gained from dealing with analogous efforts by holding companies to foist dangerous affiliate transactions on insured depositories. I’ll begin by adding some historical context to explain how B of A got into this maze of affiliate conflicts.

Ken Lewis’ “Scorched Earth” Campaign against B of A’s Shareholders

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1 comment:

lmclain said...

I keep calling him out, but he won't respond. Where IS that brainwashed, heel-clicking goof who said "the system is working"? He must have died, because he can't be up on current events and be still sticking to THAT delusional train of thought...or maybe he's an investment banker who is starting to realize his gig is up (and over).