BoA is going to fuck you, the taxpayer, enjoy

Discussion in 'Politics' started by D_Davy_Downspout, Oct 20, 2011.

  1. D_Davy_Downspout

    D_Davy_Downspout Account Disabled

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    BofA Said to Split Regulators Over Moving Merrill Derivatives to Bank Unit - Bloomberg

    Another take:

    Bank of America Deathwatch: Moves Risky Derivatives from Holding Company to Taxpayer-Backstopped Depository


    So the short form: BOA thinks that it's going to get fucked on it's CDS exposure to the euro crisis. CDS's are just crazy-ass unregulated betting that the banks have been doing on the side.

    So it moved that money over to it's deposit business, which has FDIC backing. Due to the rules on these things, in the event of a failure the derivative business will get first call on any assets, including the roughly $1 Trillion in deposits. That means the FDIC will have to pony up that amount or the average person gets screwed and a panic occurs. The FDIC has next to no assets right now because banks have been failing like champs, so that money is going to directly come from the taxpayer.

    Also the bank will likely still fail because it was probably going to before this, which will probably lose the job of you or someone you know.

    Have a nice day.
     
  2. Drifterwood

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    If these aren't just fixed term deposits, then why doesn't everyone move their money?
     
  3. D_Davy_Downspout

    D_Davy_Downspout Account Disabled

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    Most people have no idea this is going on, and many don't understand what's going on when they read about it.

    Not to mention, this was happening pretty much in secret until a couple of people involved anonymously tipped off the media. Even still, it's only in Bloomberg and a few other places.

    This is banks fuck over everyone in the modern age. Most of their stuff is so esoteric that it's not even technically illegal yet, and it's hard to get the public worked up when you have to learn a whole bunch of jargon to understand how you've been fucked for sums of money that you can't even wrap your head around.

    To this day, I still have people trying to say that the last banking collapse was caused by people tricking banks into lending them more than they could afford, and there's huge volumes of research and analysis that debunk that.
     
  4. D_Davy_Downspout

    D_Davy_Downspout Account Disabled

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    Hey and for reference the entire world economy is probably around $60 trillion and the US GDP is 15 trillion.
     
  5. Drifterwood

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    You need to watch the clip. The prof of economics goes through the future funding requirements on health and retirement as promised, and in the case of the UK often prepaid in our tax structure.

    During the last disaster, HSBC, was about the only truly solvent bank around.
     
  6. D_Davy_Downspout

    D_Davy_Downspout Account Disabled

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    No idea what clip you're talking about, but entitlement numbers are always gonna be scary if you project them out 50-75 years. I'm not worried.
     
  7. jakesph

    jakesph New Member

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    And to think they asked me why I was closing my accounts with them. Ha! Fucking hate b of a.
     
  8. houtx48

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    No doubt someone is going to take it in the shorts did not Warren Buffet buy another 5 billion worth B o A stock.......Although he does not rely on the market to make his money it does play a factor.
     
  9. Redwyvre

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    Perhaps it's best the illusion is coming to end... what a mess...
     
  10. b.c.

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    Hey, anyone who's been a depositor with BofA has been getting fucked from the "get".
     
  11. lucky8

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    I wonder who these counterparties are? Figure that out and you'll know who's responsible for creating this entire mess...is collusion suddenly legal now? Because this kind of shit doesn't just happen by accident
     
  12. Bbucko

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    I dropped BoA years ago when they set up an (entirely) fictional situation involving hundreds of dollars work of fees. Suntrust, though surely yet another mega-big American bank, not only has friendlier terms but accepted me as a customer. They remain my banker, but I'm looking at a local Credit Union with fresh eyes, right now. Ultimately it'll depend on ATM (and some other) fees. They may well get my business come November 10, when Suntrust begins changing their fee structure.

    I loathe banks: always have: always will.
     
  13. Perados

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    THE CLIP

    How Much Money Does The US Owe Compared To World GDP?

    and ur right... he doesnt care for inflation.. he just compare THEN and NOW
     
  14. TurkeyWithaSunburn

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    That sir is the more interesting question. All done hush hush behind the scenes really.
     
  15. D_Davy_Downspout

    D_Davy_Downspout Account Disabled

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    I don't see why it's such a mystery. It's other financial institutions.

    Their fates are all entwined.
     
  16. lurker37160

    lurker37160 Member

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    Find a credit union and put your money there.
     
  17. TurkeyWithaSunburn

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    Which institutions? :rolleyes:

    Some of the same banks that got caught up in the derivatives stuff a few years ago and then the bailout happened and the counter parties immediately got paid off?:eek:
     
  18. Domisoldo

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  19. b.c.

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    I don't mean to sound like a frekin' commercial here, but at present I find Capital One relatively more palatable than many. Unlike BofA, who is currently charging a 5.00 monthly fee for using a debit card, Cap One gives credits (something like A.E. does) for every purchase, that you can use for some kind of gift, though you'd have to use it a lot to add up to anything of value.

    Further, there's no fees for checking account (knock on wood) excepting the cost of the checks. And if you use one of those strange ATM's in some mom or pop store that charges up to 2.50 for the pleasure, Cap One refunds that fee... for now at least, because if BofA gets away with its shit, no telling who else will try to follow suit.

    "Do you want to know more?"

    https://secure.consumersunion.org/site/Advocacy?cmd=display&page=UserAction&id=2569
     
    #19 b.c., Oct 22, 2011
    Last edited: Oct 22, 2011
  20. D_Davy_Downspout

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    What are you talking about? Nobody is entirely sure of the extent of the derivatives market, let alone having paid it off.

    Some of the AIG stuff was backstopped by the US Gov, but that wasn't even a fly on the amount of this shit that's out there.
     
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