Bank of America’s Shifts Derivatives Risk to Taxpayers
Let’s make this simple. Derivatives are speculative instruments used to gamble on the success or failure of some monetary enterprise. Bank of America took these derivatives from one division (uninsured) to another (federally insured). They took a essentially a speculative gamble and moved it into a federally insured institution so that any losses will be born by the federal government.
Isn’t that just sweet?
– Well, it is if you are Bank of America
Lawmakers are criticizing Bank of America Corp. again, this time over the reported transfer of financial instruments from Merrill Lynch into the bank’s deposit-taking arm.
It’s a move the lawmakers say could put taxpayers on the hook for big losses – three years after the bank received billions in bailouts from the federal government.
- Hold Onto Your Lug Nuts: Bank Of America To Close 600 Branches & 30,000 Jobs. (politicalvelcraft.org)
- Big banks back off planned debit card fees (charlotte.news14.com)
- Bank of America CEO ‘Incensed’ by Critics (crooksandliars.com)
- Bank of America makes it harder to waive unpopular debit card fee (bizjournals.com)
- Bank of America Derivatives Transfer Draws Lawmaker Scrutiny (businessweek.com)
- Bank of America CEO fires back at bank’s critics (kansas.com)