Then sit down and buckle your seat belt. If this doesn't get your blood boiling then get yourself to the doctor you might be dead.
It appears that Ben Bernanke of the Federal Reserve has come up with a totally new way to bail out the banks. Facilitate the transfer of risky derivatives to a FDIC branch of the bank. Who is set up to benefit? The Bank of America--Bofa--has been given the green light from Ben Bernanke to transfer 75 TRILLION dollars worth of risky derivatives from one subsidary holding company to an FDIC insured bank that is "flush with deposits."
Bloomberg reports that BOFA Chief Financial Officer Bruce Thompson believes such transfer is “the normal course of dealings that we’ve had with counterparties since Merrill Lynch and BofA came together.”
According to Rolling Stone reporter Matt Taibbi:
It,’ Matt Taibbi noted:
“(BY) shifting… derivatives contracts onto its own federally-insured balance sheet… an irresponsible debtor, Bank of America, is keeping a loan shark from breaking its legs by getting his rich parents to co-sign his loan. The parents in this metaphor would be the FDIC. The FDIC naturally is not pleased with this development, but the Fed, the supreme banking regulator, is apparently encouraging this move. Here’s how Bloomberg characterized this move: ‘ In short, the Fed’s priorities seem to lie with protecting the bank-holding company from losses at Merrill, even if that means greater risks for the FDIC’s insurance fund.’
“AGAIN and again, the Fed proves it has no appetite for allowing Wall Street to eat its own pain, and continually encourages banks to stick the government with its losses and bad assets. This move will allow Bank of America to keep a Band-Aid over its disastrous financial situation far longer than it would be able to in a genuinely free market. People should be outraged at this development.”
Cenk Uygur explains the situation:
It sounds like the Senate needs to rein in the Federal Reserve asap. Contact your Senator and hopefully your Senator will not be representing the 1% and simply being silent and going along with this outrageous new way for taxpayers to bail out the risky investments by Banks.
You might also ask Obama why he doesn't fire Timothy Geithner who appears to once again be protecting fake people (corporations) and promoting the Bankster's agenda instead of protecting real people.
This is a five alarm Buzz....Buzz.....