Federal Reserve Now > Backstopping $75 Trillion Of Bank Of America's > Derivatives Trades > . . . and people are still mystified why I want > the Fed Dead???? > are YOU going to hand over > your money to pay for this? > WAKE > UP!!!!!!!!!!!!!!!! > > Fe

Federal Reserve Now
> Backstopping $75 Trillion Of Bank Of America's
> Derivatives Trades
> . . . and people are still mystified why I want
> the Fed Dead????
> are YOU going to hand over
> your money to pay for this?
> WAKE
> UP!!!!!!!!!!!!!!!!
>
> Federal Reserve Now Backstopping $75 Trillion Of Bank Of
> America’s Derivatives Trades
> This story from Bloomberg just hit the wires this
> morning. 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.
> http://www.bloomberg.com/news/2011-10-18/bofa-said-to-split-regulators-over-moving-merrill-derivatives-to-bank-unit.html
>

OPINION: FDIC should only cover accounts held by individual US Citizens. The Federal government of the USA should not insure, cover or protect money belonging to any entity that is not a citizen of the United States.

DT,



Sounds good to me, now on to foreign aid

Love the video. Openmind can you send the link? Thanks!

When will the madness end. I really appreciate those who bring forth truth in a historical and current arenas

....you cast your vote for the Federal Reserve credit systen each time you indorse your deposits with an unrestricted naked signature......if you dont invoke 12 U.S.C. 411, by default, you use the very credit system you say you want to avoid.......also, you authorize your bank to act as backup witholdind agents on all your original issue securities without filing a W9 de-authorizing them to withhold, but I dont care to teach anyone because its written in plain English in the instructions and publications of basic IRS forms.....i.e., a 1040 Form is Class 5 gift & estate tax......Publication 1212.......you have a $3.5 million unified tax credit on the estate side if you dont take it, some other entity takes it in your place.....but what estate, you ask..........and so much more...

One good video to watch is David Merrill "A Federal Reserve Remedy",,,,,, among many others.

Our conversion (using GOLDMEMBER's suggestion above) of PRIVATE fiat FRNs to Lawful Money truly votes against FED in very practical, personal manner. It's quite a simple process, but understanding is necessary to implement. As Lawful Money is NOT taxable, it's a great way to lawfully exempt yourself from irs "tax" and simultaneously ELIMINATE "national debt", dollar for dollar. Do We the People truly have the Power in Our Hands to bring down the banksters without waiting for president or congress to do it for us? Yes!! Dinarians who discover, learn and implement this truth could go far to "end the FED" @ cash-in. More info @ myprivateaudio.com from guest speakers David Merrill, Michael Joseph, and JOHN HENRY DOE.

Blessings 2U!

.....how do I say this to express my sincerity? STOP COMPLAINING ABOUT THE GOVERNMENT, THE IRS, THE BANKS, THE COURTS!!!!!!! Blame yourself for not reading and understanding basic basic basic trust law, tax law, debtor/creditor relations, common law contract, executors & administrators, estate law, Equity/Chancery................we have a perfect and whole government, the greatest signed document in the history of the world "The Declaration..." a protective trust your countrymen, pure geniuses, who understood Kings and banks, put YOUR RIGHTS in the trust: to protect you from becoming literally "iron yoke slaves" not just from the banks, but from our own incompetence, (I include myself) and if you have a Certificate of Birth on file in this great Republic you can access this freedom anytime you're ready to stop being a "Ward" an incompetent.....if you only knew the power you have to first govern yourself as the source of law, unlimited assets, credit, unlimited capacity to extinguish debt honorably, competently assess taxes......maybe if you knew the internet is your rare chance to access teachings freely available to you to understand priciples of law and excersizing rights you dont even know you have,,,,,,, you would never never even waste your time protesting in the streets. In plain english the law says your a Ward until you use your "rights" it doesnt say you stop being a Ward if you complain about the system..start reading about law privately/stop complaining....stop "waiving" your rights.......back to Dinar entertainment.....

Let the whole system crash, then we can get back to Common Law Pricipals. AJ