BOA just handed 75 trillion in derivatives to the US taxpayers (Congressmen, wages)
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Haha, who? Herman Cain who has previously served as Chairman on The Federal Reserve? Mitt Romney and Rick Perry who sympathize with corporations and deregulation? We see no hope and if you do than you are drinking the same Kool-Aid being fed to us since "Trickle Down" policies of Reagan. Ron Paul has the right idea but America is too influenced by Mainstream Media to vote him in. Americans are taking OUR country back from Corporately controlled politics.
But....but....but..... I see you will stand with the status quo. Go protest.
The President does not have the powers you are ascribing to him. Congress is the branch that passes laws and regulations, Congress is the branch that controls the purse strings. As regards the issue you are discussing, derivatives, Congress entertained the idea of regulating them since they became a significant part of the financial industry. They should have been regulated when Brooksley Born sounded the alarm back in the 1990's. And while many will blame that failure on Democrats, not without reason, it does need to be noted that one of the key players in the decision not to regulate derivatives was Senator Gramm, R-Texas.
We vote for congressors too. Many have been there way too long.
You OWS folks have no clue what is going on. That is the problem. If the banks started handing them a free checking account with a hundred bucks in it they'd all hail how great they are.
It is the government that is allowing this all to happen. Like I've said from the beginning these fools are protesting at the wrong address. Head to DC.
Only Congress can abolish the fed, and they should have done it a long time ago.
FYI Many protestors are protesting against the fed.
Haha, who? Herman Cain who has previously served as Chairman on The Federal Reserve? Mitt Romney and Rick Perry who sympathize with corporations and deregulation? We see no hope and if you do than you are drinking the same Kool-Aid being fed to us since "Trickle Down" policies of Reagan. Ron Paul has the right idea but America is too influenced by Mainstream Media to vote him in. Americans are taking OUR country back from Corporately controlled politics.
That's the problem. People think another president with a different name and a letter behind their name would change something like that. Even if they wanted to change it, which they don't (except Ron Paul), they would have to get Congress to vote for it, which will be next to impossible.
Not sure what they mean by "in case of failure". What does that mean? FDIC does not reimburse depositors investment losses, so I don't know what they would insure in this case.
I think the thrust of the articles here is the ability and propensity of banks to shift accounts in ways that spread potential liability. In this case Bank of America acquired Merrill Lynch, which was not FDIC insured for the very reason you cited. Bank of America kept Merrill Lynch separated from their FDIC-insured operations, until just recently in response to the Moody's downgrade. How Bank of America now tracks these derivatives as bank assets/losses can have an impact on how much the FDIC would be insuring in case Bank of America fails. And that's not necessarily far-fetched. Bank of America's stock has fallen substantially and the problems they acquired along with Merrill Lynch as well as Countrywide are not going away. At this point, I question whether Bank of America's capitalization is sufficient to the potential risks it's incurred, both via the mortgage defaults and the derivatives markets.
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