OH MY GOSH! 80 IS THE NEW 65!!!!!! END THE FED PEEPS! YOUR $$$$ IS GOING DOWN THE DRAIN BECAUSE YOU ARE BEING RIPPED OFF BY BANKSTERS!!!!

TAKE A LOOK AT THE GRAPH OF THE MONETARY BASE AT THIS LINK!

IT'S GOING BALLISTIC! HYPERBOLIC!

THAT MEANS THE MONEY PRINTING AT THE FED HAS GONE INTO

OVERDRIVE!!!

THAT MEANS THE PURCHASING POWER VALUE OF YOUR DOLLARS IS



>>>>>>> C R A S H I N G <<<<<<<



[link to research.stlouisfed.org]

Gotta send trillions to Europe you know.

401ks will more than likely one day just cease to exist.


The money is invested somewhere..........and since the global fiat paper money system is about to collapse.......all exchanges will shut down. There will be no way to determine the value of anything.


Because Credit Default Swaps are a ticking time bomb.....everything will one day just blow up.....and vanish.

AND NOW THIS >>>>>>>>>



BANK OF AMERICA AND JP MORGAN CHASE HAVE SHIFTED THEIR RISK OF

OVER THE COUNTER DERIVATIVE LIABILITIES OF $75 TRILLION DOLLARS

FOR BOA , AND $79 TRILLION DOLLARS FOR JPMC ....

TO THE TAXPAYERS OF AMERICA!!!!


SO YOU THINK THE $ 15 TRILLION DOLLAR BAILOUT WE PAID FOR

WAS NOT ENOUGH???

NOW WE GET STUCK WITH THIS????


[link to jhaines6.wordpress.com]

Last Edited by Torchbearer on 11/16/2011 09:19 PM

I AM HAVING DIFFICULTY GETTING THE LINK TO FUNCTION:

SO HERE IS THE MAIN STORY IN THE ARTICLE...


The Fracking Industry’s War on the Truth &#8594;
HOLY BAILOUT: Federal Reserve Now Backstopping $75 Trillion in Bank of America’s Derivatives
Posted on October 22, 2011
by The Daily Bail | October 19 2011

This story from Bloomberg just hit the wires [October 19 2011]. Bank of America is shifting derivatives in its Merrill investment banking unit to its depository arm, which has access to the Fed discount window and is protected by the FDIC.

This means that the investment bank’s European derivatives exposure is now backstopped by U.S. taxpayers. Bank of America didn’t get regulatory approval to do this, they just did it at the request of frightened counterparties. Now the Fed and the FDIC are fighting as to whether this was sound. The Fed wants to “give relief” to the bank holding company, which is under heavy pressure.

This is a direct transfer of risk to the taxpayer done by the bank without approval by regulators and without public input. You will also read below that JP Morgan is apparently doing the same thing with $79 trillion of notional derivatives guaranteed by the FDIC and Federal Reserve.

What this means for you is that when Europe finally implodes and banks fail, U.S. taxpayers will hold the bag for trillions in CDS insurance contracts sold by Bank of America and JP Morgan. Even worse, the total exposure is unknown because Wall Street successfully lobbied during Dodd-Frank passage so that no central exchange would exist keeping track of net derivative exposure.

This is a recipe for Armageddon. Bernanke is absolutely insane. No wonder Geithner has been hopping all over Europe begging and cajoling leaders to put together a massive bailout of troubled banks. His worst nightmare is Eurozone bank defaults leading to the collapse of the large U.S. banks who have been happily selling default insurance on European banks since the crisis began.

Bloomberg Excerpt:

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.

The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. 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, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.

Three years after taxpayers rescued some of the biggest U.S. lenders, regulators are grappling with how to protect FDIC- insured bank accounts from risks generated by investment-banking operations. Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms.

“The concern is that there is always an enormous temptation to dump the losers on the insured institution,” said William Black, professor of economics and law at the University of Missouri-Kansas City and a former bank regulator. “We should have fairly tight restrictions on that.”

Moody’s Downgrade

The Moody’s downgrade spurred some of Merrill’s partners to ask that contracts be moved to the retail unit, which has a higher credit rating, according to people familiar with the transactions. Transferring derivatives also can help the parent company minimize the collateral it must post on contracts and the potential costs to terminate trades after Moody’s decision, said a person familiar with the matter.

Keeping such deals separate from FDIC-insured savings has been a cornerstone of U.S. regulation for decades, including last year’s Dodd-Frank overhaul of Wall Street regulation.

U.S. Bailouts

Bank of America benefited from two injections of U.S. bailout funds during the financial crisis. The first, in 2008, included $15 billion for the bank and $10 billion for Merrill, which the bank had agreed to buy. The second round of $20 billion came in January 2009 after Merrill’s losses in its final quarter as an independent firm surpassed $15 billion, raising doubts about the bank’s stability if the takeover proceeded. The U.S. also offered to guarantee $118 billion of assets held by the combined company, mostly at Merrill.

Bank of America’s holding company — the parent of both the retail bank and the Merrill Lynch securities unit — held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. About $53 trillion, or 71 percent, were within Bank of America NA, according to the data, which represent the notional values of the trades.

That compares with JPMorgan’s deposit-taking entity, JPMorgan Chase Bank NA, which contained 99 percent of the New York-based firm’s $79 trillion of notional derivatives, the OCC data show.

Moving derivatives contracts between units of a bank holding company is limited under Section 23A of the Federal Reserve Act, which is designed to prevent a lender’s affiliates from benefiting from its federal subsidy and to protect the bank from excessive risk originating at the non-bank affiliate, said Saule T. Omarova, a law professor at the University of North Carolina at Chapel Hill School of Law.

“Congress doesn’t want a bank’s FDIC insurance and access to the Fed discount window to somehow benefit an affiliate, so they created a firewall,” Omarova said. The discount window has been open to banks as the lender of last resort since 1914.

Related articles

Bank of America Trying To Stick Taxpayers With A $74 Trillion Bill By Moving Derivatives Into FDIC-Insured Accounts (crooksandliars.com)
BofA puts taxpayers on the hook for Merrill’s derivatives (blogs.reuters.com)
Here’s Why Everyone’s Freaking Out About BofA Moving Its Derivatives To Its Retail Banks (BAC) (businessinsider.com)
ADVERTISEMENT

They have to export that inflation or it will "all" stay here !

THE VALUE OF ALL GOODS AND SERVICES PRODUCED BY AMERICANS

IS ONLY $13 TRILLION DOLLARS FOR A WHOLE YEAR!


YET THESE BANKSTERS ARE INTENDNG TO STICK US WITH THE BILL

FOR THE COLLAPSE OF THEIR HOLDINGS IN THE CREDIT DEFAULT SWAPS

ON THE FRAUDULENT MORTGAGE BACKED SECURITY BONDS THAT

THEY SOLD TO FOREIGN BANKS IN EUROPE!


THIS IS OUTRAGEOUS!

THE INFLATION THAT HITS HERE IN AMERIA WILL BE DEVASTATING!

EUROPE IS ON THE ROPES!

OUR ECONOMY HERE IN AMERICA WILL BE IN DEEP TROUBLE SOON TOO!


BETTER ELECT RON PAUL PRESIDENT FOLKS!

ANY OF THE REST OF THESE CLOWNS WILL DECLARE

FORCE MAJEUR ....THEN MARTIAL LAW...

AND THAT WILL BE THE END OF YOUR INVESTMENTS, SAVINGS, RETIREMENT...


AND YOUR ENTIRE FUTURE WILL EVAPORATE!

The 5 largest banks in America are now holding a total of $244 TRILLION

DOLLARS IN DERIVATIVES, with the bulk of these contracts consisting

of CREDIT DEFAULT SWAPS.

AREN'T YOU JUST DELIGHTED TO KNOW THAT WHEN THESE

CDS CONTRACTS IMPLODE, WHEN EUROPE DEFAULTS ON THEIR

BONDS....

YOU WILL BE PAYING THE BILL!