This is a direct transfer of risk to the taxpayer done by the bank without approval by regulators and without public input.

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.

36 comments on “This is a direct transfer of risk to the taxpayer done by the bank without approval by regulators and without public input.
  1. Got Silver? says:

    If we are all insane them being insane will be normal.

  2. Uptic says:

    B O A 75 Trill
    JP Morgan 79 trill
    154 trill ???
    world G D P 56 trill

  3. Happy Dick says:

    TOOO MUCH!!!

    Where are the guillotines??

  4. Uptic says:

    @Happy Dick
    when I read that, 2 things shot threw my mind .. 1 ..I am so glad i have PMs 2.. bullets and butter time.. The fed is just out of control.

  5. Uptic says:

    sorry .. & 2 how close is ” bullets and butter time.

  6. @M&S,

    hahahahaha…..Bernanke just sealed America’s destruction.


  7. wauhoo says:

    Ball game over.

  8. Happy Dick says:

    @Uptic … right!

  9. PM Bug says:

    Disgusting. No one should support those &*%$ers with their money/deposits.

  10. Robert Mockan says:

    LOL! Why not just give each of the insane oligarchs a few trillion so they can stop the silly games. How much could it be? 1000 trillion? Does it really matter, because either the insane oligarchs will kill everybody who threatens them in any way, ever, or instead they will all be killed. Either way, the fools will never be able to spend it all.

  11. DUMP NUTS says:

    Now that Wall Street banks have had their Euro default insurance money backstopped, they have a win-win situation – Euro stays and pays debts, American tax payers bail out the banks for their losses on the bet; if the Euro defaults, European taxpayers effectively bail out Wall Street who collect the insurance money plus perpetual interest for which Euro taxpayers will be on the hook. LOL! You couldn’t make this shit up.

    We’re not dealing with mere FRAUD anymore, but a gigantic fucking FIX of the RIGGED ‘MARKET’ ECONOMY to benefit TRILLIONAIRES who got all that OLD MONEY and are desperately trying to ensure OLIGARCH status in the New Order. LOL! It’s hilarious. They’re literally FUCKING THE ENTIRE HUMAN RACE FOR MONEY! lol!

  12. Robert Mockan says:


    Here is wild and crazy idea.


    Or will people just watch until the global financial casino debts being socialized go from $1 quadrillion, to $10 quadrillion? LOL! It really does not matter. The insane oligarch coffins are ready and are not going anywhere.

  13. Dan / Guernsey CI says:

    The financial terrorists strike back.

    And their intentions are clear.

    If we are to go down then we are going to make sure we take as many of you with us as possible.

  14. trish says:


    long time no speak:-) I am not sure about PM’s anymore. I think when this goes down PTB who own most of the PM’s to make a difference, will push PM’s down fast with it and shake all the weak hands desperate for liquidity now that everything else is worthless. just my opinion, but watching how insane they are, they will not without a fight let PM peasant holders ride off into the sunset.

  15. kdt says:

    mass hysteria over nonexistant numbers wich have no bering on the real world.
    picture trying to explaine this”disaster”to a amizon tribal group, they would think you were nuts, and they would be right. the world will not stop when this mess falls apart, and the only ones who will be harmed are those living in a fantasy world not those with there feet on the ground and there eyes open.

  16. jimmy chen says:

    oh my barrs hurt so much from carrying arr de silver…… oh my budda…… my barrs… poor dim sum nutters…….


  17. Uptick says:

    Hi .
    all I know is , I do not see any counterparty risk owning PMs.
    It is the best that I can come up with agianst currency changes over time.

  18. Uptick says:

    @Robert Mockan |
    ” debts being socialized go from $1 quadrillion, to $10 quadrillion?”
    You are right ( zimbabwe 10 milion dollar bill )

  19. Mother Earth says:

    My theory is now that the dreivative where explicitly created to tie all banks in a knot, and the plan from the outset was to coopt the government and enslave the people in the plutocratic gulags..

  20. Nak says:

    The reason Glass–Steagall was repealed was to allow this type of legal theft.
    When injustice becomes law, resistance becomes duty.
    Would like to hear OCW protestors chant NO JUSTICE, NO PEACE!

  21. Uptick says:

    @Mother Earth
    ” dreivative where explicitly created to tie all banks in a knot, ”
    100% agreed

  22. Uptick says:

    what is even more crazy is to think how much they made off each dreivative changed into CDS now to have them make more again.

  23. Uptick says:

    I would have to think 25 years from now , there will be a bunch of ppl referring to these moments of our time and the shit mess of it
    and quoting Keiser.

  24. Dark Markets says:

    Dear Max: I share your outrage – your sputtering “WHY HASN’T THIS GUY (obama) BEEN IMPEACHED YET!” outrage over Obummer’s ABJECT FAILURE to PROSECUTE FRAUD & financial crimes, and to PROTECT his constituents – AMERICAN VOTERS – from the CRIMES, frauds, predations, and GENOCIDAL BANKERS that 20+ years of (rubinomics) “DEREGULATION” have unleashed on America.

    HOWEVER, Max – you, too! seem to have a SOFT spot, for saying “MARY SCHAPIRO” or “GARY GENSLER”. Yes, you passed your Series 7 back when – but we need SOMEONE to point out that
    #2. GS & JPM are merely front-companies for the CENTRAL BANKSTERS cabal – of whom the Fed is only the most visible part

    To repeat, here is Evelyn de Rothschild PIMPING “bailouts” as “FREE MARKET CAPITALISM”
    when we know damn well that it is COMMISSAR EXTORTION by the govt. & IRS, to SUBSIDIZE…. = SOCIALIZE, the stolen, looted, raped & pillaged “profits” for the master class.
    Maria Bartiromo QUOTES edr when she says “you have BLAMED ALL THE RIGHT PEOPLE” – when THE BLAME _STARTS_ with the mega-banksters at the top such as him !!

    You’ve got to PERSONALIZE the crimes, just as the Repubs spent the ENTIRE 1990s PERSONALIZING bill clinton as the face of lying, cheatin’, two-timing “liberalism” – even though the vast majority of Billy Bobs and Mary Lou’s who bought into the right-wing media lynch-mob, are now in NEED of food stamps, pension protections, minimum workplace safety standards, and other LEGITIMATE government social safety net functions !!!

  25. snoop diddy says:

    Buffett to 99%
    ‘Suck on this’

  26. snoop diddy says:

    Buffett didn’t go into BOA out of the kindness of his heart.

  27. $75,000,000,000,000 will kick the can a few more yards down the road. Notice how each ‘kick’ gets more expensive! and delays for a shorter interval!…Kickbacks/Bribes are another related subject!

  28. kdt says:

    @alastair they can pretend to do what ever they wish it is ALL mass hysteria over numbers that DO NOT exist in the real world. if we can admit to the delusion it is half the battle , of corse that means admiting that all we have is what we can see and hold, not the fantasy most beleeve the world to be, as the delusion tears its self apart attempting to self reinforce in the face of multiple reality checks we get to see how nutty we are as a species . we are not rational but rather rationalize our way in to messes no rational person would ever get in to.

  29. Uptick says:

    @kdt |
    well said!
    “admiting that all we have is what we can see and hold, not the fantasy most beleeve the world to be, ”
    Lets just hope that the ones holding more guns understand that!

  30. snoop diddy says:

    bailout Buffett – the orifice of Omaha

  31. kdt says:

    @Uptick guns and who controls them are the core of what is being taken from us , as it has always been the foundation of all our freedoms ,wether we chose to beleeve it or not.
    an armed man is a free man and has “freedoms” an unarmed man is a slave and is alowed “privlages” the two have looked simalar for so long that people can’t tell the difrence , if those seeking “public safety”through gun control get what they want, the diference will make its self clear “non violence” works best with some teeth to back it up.

  32. Harry says:

    @Nak: when will we see the first burning bank for real?

  33. steveosilver says:

    So why push Iran then, with a reset all them digits go poof, and so does the evidence.
    Come on Iran remember the Ayatollah is an asshola t shirts.
    Launch the EMP, you know you want to!???????
    Nope guess they are enjoying the show to much, popcorn anyone, lol
    Iran and the EMP Threat
    Do not forget to acquire them old machines that have no transistors in em.
    where we put that eniac and them dam punch cards.
    Its gonna take a week to write this response, lol

  34. Danny Cunnington says:

    @Steveosilver, China has EMP too. 2 years back that hit a cruise liner with one of the Mexican Pacific coast for a little demonstration. The idiot yanks are still in denial that every single one of their aircraft carriers are a pile of useless junk in the face of such technology.

    Russia and China have developed aircraft that use valves instead of transistors. So in a modern dog fight, all the dumb western aircraft drop out of the sky and crash and the Russian and Chinese planes are unaffected.

    Someone who knows told me that one tactic is to target a landing plane on a carrier just before it lands 30 tons of Fighter bomber facebutting the carrier!

  35. Nak says:

    This does not count, but a couple of weeks ago I saw the neighborhood kids lite a fire in back of a bank. The flame reached 8 feet high, it looked really cool, by the time I walked over to snap a picture the kids scattered and the flame went down. I confronted a few kids about who lit the fire and praised them for their efforts.

Watch the latest Keiser Reports:

Buy Gold Online
Buy Gold Online