The Wall Street prefers privatized profits and socialized crony capitalism. The Bank of America has allegedly transferred 75 trillion dollars in potentially toxic derivatives so the "money" to be covered by the Federal Deposit Insurance Corporation (FDIC).
The taxpayers may once again insuring the risky financial bets of another bank "too big to fail." The loss of $75 trillion,possibly insured by government money, dwarfs budget deficit "austerity" talks.
The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass–Steagall Act of 1933.
It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank.
The FDIC currently insures deposits at nearly 8 thousand institutions.
The FDIC also examines and supervises certain financial institutions for safety and soundness. The FDIC performs certain consumer-protection functions, and manages banks in receivership. (failed banks).
The FDIC also examines and supervises certain financial institutions for safety and soundness. The FDIC performs certain consumer-protection functions, and manages banks in receivership. (failed banks).
We don't know how the BOA would be able to get derivatives insured by the FDIC. Congress need to change the law and Obama needs to write an Executive Order so this country doesn't get stuck with another TRAP like bailout.
A Reuters columnist recently wrote a column "Is Bank of America preparing for a Chapter 11?" It is starting to look that way.
The FDIC was designed to protect small deposits to prevent bank runs. It was not designed to protect big banks or worthless derivatives. Let the BOA fail!
Derivatives are like casino chips to high stakes venture capitalists. Let these billiaonaires and millionaires go bankrupt for playing such a risky game.
A word to our readers : Get your deposits out of BoA ASAP!
soruces: BuzzFlash and Wikipedia
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A Reuters columnist recently wrote a column "Is Bank of America preparing for a Chapter 11?" It is starting to look that way.
The FDIC was designed to protect small deposits to prevent bank runs. It was not designed to protect big banks or worthless derivatives. Let the BOA fail!
Derivatives are like casino chips to high stakes venture capitalists. Let these billiaonaires and millionaires go bankrupt for playing such a risky game.
A word to our readers : Get your deposits out of BoA ASAP!
soruces: BuzzFlash and Wikipedia
Subscribe to the Rightardia feed: http://feeds.feedburner.com/blogspot/UFPYA Netcraft rank: 6627 http://toolbar.netcraft.com/site_report?url=http://rightardia.blogspot.com
Rightardia by Rightard Whitey of Rightardia is licensed under a Creative Commons Attribution 3.0 Unported License.
Permissions beyond the scope of this license may be available at rightardia@gmail.com.
2 comments:
The allowance provided by the FDIC is paid for by levies on affiliate banks.
payment protection insurance
As it should be, a tax of sorts.
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