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Editorial See other Editorial Articles Title: Bank Of America Makes Taxpayers Insure 75 Trillion Dollars in Risky Derivative Schemes Bank Of America Makes Taxpayers Insure 75 Trillion Dollars in Risky Derivative Schemes Submitted by mark karlin on Sat, 10/22/2011 - 9:33am. EditorBlog MARK KARLIN, EDITOR OF BUZZFLASH AT TRUTHOUT Consistent with the Wall Street standard operating procedure of privatized profits and socialized risks, the Bank of America has allegedly transferred 75 trillion dollars in potentially toxic derivatives to enable the money to be covered by the Federal Deposit Insurance Corporation (FDIC). What does this mean in plain English? It means that we, the taxpayers, are once again insuring the casino gambling financial bets of another bank too big to fail. So, while the Tea Party and the Republicans in Congress rail about cutting taxes, they are saying nary a word about taxpayers covering the shady financial gambling of big banks. The potential loss of $75 trillion, insured by government money, dwarfs budget deficit "austerity" talks. And the Bank of America - although it is the largest US bank in total financial assets according to Sen. Dick Durbin (D-Illinois) - is not a good investment for taxpayers right now, even though it recently showed a profit on paper. According to Bloomberg: Moody's Investors Service downgraded Bank of America's long-term credit ratings Sept. 21, cutting both the holding company and the retail bank two notches apiece. The holding company fell to Baa1, the third-lowest investment-grade rank, from A2, while the retail bank declined to A2 from Aa3.... Bank of America's rating is now four grades below the one Moody's assigned to JPMorgan Chase & Co. (JPM), the biggest U.S. bank by deposits at midyear, and a level below the rating given to Citigroup Inc. (C), the third-biggest. Bank of America is the only U.S. lender that lacks a rating of A3 or higher among the five firms listed by the Office of the Comptroller of the Currency as having the biggest derivatives books. So the free market isn't really "free." Wall Street depends upon hard-working Americans to keep them from the negative results of taking bad risks in an effort to turn large profits and big bonuses. If you own a small business and take such risks and they fail, you go bankrupt. If you run a Wall Street bank "too big to fail," average Americans cover your losses. Call it Wall Street socialism. Ominously, in regards to that 75 trillion dollars that we are now backing with our dollars, a Reuters columnist recently wrote a commentary headlined, "Is Bank of America preparing for a Chapter 11?" It would be great to go to Vegas and have all your gambling debts covered by the house. That's the Wall Street way - and the US government is the house. The taxpayers are holding up Wall Street, not the other way around. **** If you'd like to receive these commentaries daily from Truthout/BuzzFlash, click here. You'll get our choice headlines and articles too. Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest Begin Trace Mode for Comment # 6.
#1. To: All (#0)
Thank God for Capitalism and America is not one of those commie marxist countries. Im going out to Mickey Dee's to get a jumbo order of Freedom Fries with my Happy Meal.
Amen to that! Now, if I could just get something going and get back to trucking. ;)
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