More Bank of America News

Everyone knows that Bank of America is in serious financial trouble.  They continue to look for ways to keep themselves solvent.  There latest is a real doozy.  They have announced they are selling some of their derivative investments from their Merrill Lynch subsidiary over to Bank of America.  And of course they transferred the ones most likely to default.

This means if they default on these investments, that they will now be covered by FDIC.  The US Treasury, through taxpayer dollars, guarantees the FDIC.  There are no guarantees for investors through Merrill Lynch, which is officially not a bank.

There are banking rules in place to prevent this that were designed to protect the FDIC insurance fund.  Any marginally competent regulator would immediately deny this.

However, the Federal Reserve has said they support the move.  This of course proves more of the dishonesty and corruptness of the Federal Reserve.  They are definitely not here for the public or for the American people.  They exist solely to protect the banks.

Although the FDIC has complained, once the move received the blessing of the Federal Reserve, it was a done deal. I’m certain that Bank of America and the Federal Reserve will get away with once again transferring bank losses to the taxpayers.

Although Occupy Wall Street is bringing some attention to the corruptness of the banks, items like this continue to occur right in our faces.  The only real way to solve this is to vote for a candidate that is willing to do away with the Federal Reserve.