Bloomberg gave a warning that Bank of America is dumping derivatives into a subsidiary insured by the government. This should warn individuals that Bank of America knows that they are in serious trouble and are making desperate moves to keep them afloat.
Wednesday, October 19, 2011
The Daily Crux
From Washington's Blog:
Bloomberg reports that Bank of America is dumping derivatives onto a subsidiary which is insured by the government – i.e. taxpayers.
Yves Smith notes:
If you have any doubt that Bank of America is going down, this development should settle it …. Both [professor of economics and law, and former head S&L prosecutor] Bill Black (who I interviewed just now) and I see this as a desperate move by Bank of America's management, a de facto admission that they know the bank is in serious trouble.
The short form via Bloomberg:
Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation…
Bank of America’s holding company – the parent of both the retail bank and the Merrill Lynch securities unit – held...
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