BofA – Biggest Bank Sweetheart Deals of All Time?

By Mike Lux
There’s a reason a big majority of the country approves of the Occupy Wall Street folks in spite of all the media derision and right-wing attacks, and a reason that demonstrators all over the country and world are organizing in their wake. The reason is that most people know what too many politicians in Washington don’t: that the big banks on Wall Street have a corrupt business model that recklessly assumes taxpayers will bail them out if their bets don’t pan out, and that their political juice will get them out of trouble if they violate laws and slide around regulations. There are three things in the news that remind us of this sorry story once again, and the American people need to raise holy hell about all of them: another sweetheart deal for Citibank on fraud charges, a new Bank of America maneuver that could turn into the biggest taxpayer bailout of all time, and a faction in the administration trying to ram through a new deal for all the big banks to have their legal issues related to foreclosure wiped away.

First case in point: the astonishing (and so far mostly unnoticed) little slight-of-hand that Bank of America pulled when it switched over its Merrill Lynch-derived toxic assets to a federally insured program. Read this and weep: Bank of America is moving $75 trillion of highly risky derivative contracts “from its Merrill Lynch unit to a subsidiary flush with insured deposits.” The FDIC, which is the government agency that insures bank deposits, is screaming bloody murder, but the Federal Reserve wants to let them do it. read full article on

BofA Said to Split Regulators Over Moving Merrill Derivatives to Bank Unit

Better known as the BIG Dump on the taxpayers!

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