BoA transfers $79 Trillion in Debt to FDIC

File this one under: "How the Gosh Darn Heck are they getting away with this shizzle?"

After the credit downgrade in September, Bloomberg reported that Bank of America “moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits…” Taibbi said the transfer involved trillions of dollars in risky derivatives contracts.

According to Bloomberg: The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.


So, BoA deliberately moved $79 TRILLION in bad debt in to a FDIC insured business so that when it fails, the taxpayers will be left holding the bill. That's a crazy number when you consider that the GDP of planet Earth is $58 trillion.

Read about it: 

http://timesfreepress.com/news/2011/oct ... ver-banks/

http://jonathanturley.org/2011/11/06/ba ... -transfer/
10 Comments
10 Comments
Edited by gravitypress

At that amount it wont matter. The country will be bankrupt. Alan Grayson was grilling the Fed once about 500 billion and he figured it out to $33,000. per person in the US so 79 trillion would equate to $5,214,000 per person.

Posted by TheBatman586

So long, America. It's been nice knowing you.

Edited by turoksonofstone

  
  

    Going to check out my first Gun Show Saturday..
Posted by _Sojourn_

Well, as Mitt Romney said, Cooperation are people, and they can incur debt, and pass that debt onto whoever they need to to keep afloat...

Posted by King Saturn
more horrible news
Posted by Amegashita

Welp, that sucks.

Posted by Chaos Prime

Just replace UK with USA..
  

Edited by DoomDoomDoom

-gulp-

@turoksonofstone said:

Going to check out my first Gun Show Saturday..

I've truly been considering it man, for one they come with something other than the mail, lol.

Posted by gravitypress

Armageddonillion

Posted by turoksonofstone
@ReplicaRex:  
That's a crazy number when you consider that the GDP of planet Earth is $58 trillion.