Is Bank of America Headed for the Glue Factory? » Counterpunch: Tells the Fac... - 0 views
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Banksters Federal-Reserve-Bankster-Cartel Bank-of-America FDIC banksters
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The GAO detailed instance after instance of top executives of corporations and financial institutions using their influence as Federal Reserve directors to financially benefit their firms, and, in at least one instance, themselves….
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The corporate affiliations of Fed directors from such banking and industry giants as General Electric, JP Morgan Chase, and Lehman Brothers pose ‘reputational risks’ to the Federal Reserve System, the report said. Giving the banking industry the power to both elect and serve as Fed directors creates ‘an appearance of a conflict of interest,’ the report added….
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‘If we [i.e. the World Bank] had seen a governance structure that corresponds to our Federal Reserve system, we would have been yelling and screaming and saying that country does not deserve any assistance, this is a corrupt governing structure.’” (“Non-Partisan Government Report: Federal Reserve Is Riddled with Corruption and Conflicts of Interest,” Washington’s Blog)
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this move amounts to a direct transfer from derivatives counterparties of Merrill to the taxpayer, via the FDIC, which would have to make depositors whole after derivatives counterparties grabbed collateral.
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This move paves the way for another TARP-style shakedown of taxpayers, this time to save depositors. No Congressman would dare vote against that. This move is Machiavellian, and just plain evil.” (Naked Capitalism)
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Let’s say the second biggest bank in the country is starting to teeter because it’s loaded with all manner of dodgy (toxic?) derivatives that could blow up at any minute and take down the entire global financial system. Would you (a) Wait until the bombshell exploded knowing that the only choice you would then have would be to further expand the Fed’s balance sheet by another couple trillion dollars or (b) Try to sleaze the whole thing off on Uncle Sam and let the taxpayers pick up the tab?
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Nice catch by Marbux. A Bloomberg article explains how Bank of America is moving high risk derivatives into the coffers of a federally insured subsidiary. Meaning, when (not if) the derivatives fail, the tax payers will get stuck with covering the losses and making the Banksters whole. The article also explains the recent GAO audit of the Federal Reserve where it was disclosed that through interlocking directories and shareholdings, the Bankster industry is in control of the Federal Reserve. Awful, sickening stuff. But a good catch nevertheless. excerpt: There are two things worth noting in this article. First, according to Bloomberg, "the transfers (of derivatives) are being requested by counterparties." Well, how do you like that? In other words, the investors on the other side of these contracts want Merrill to put them under an insurance umbrella provided by the FDIC. Now, why would that be? The only reason I can come up with, is that they know that a lot of these complex instruments are undercapitalized and ready to implode, so they want to make sure they get their money back any way possible. That means they need to latch on to Uncle Sam without anyone knowing about it. But, like we said, the cat is out of the bag. The other thing worth noting is that the Fed and the FDIC are at loggerheads over the matter. ("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.") Now, that's not good at all, in fact, it's a big red flag that suggests the Fed trying to pull a fast one on the American people. One does not have to look too far for other examples of Fed misbehavior; the endless bailouts (TARP, QE1 and 2, Operation Twist, ZIRP, etc) In fact, the Fed's history is a tedious chronicle of one shifty deal after another. This is just more of the same; another gift to big finance at the public'