Bank Of America Ducks Under Feds' Skirts
Originally Posted At Naked Capitalism
October 18, 2011
Bank of America Deathwatch
Moves Risky Derivatives from Holding Company to Taxpayer-Backstopped Depository
If you have any doubt that Bank of America is in trouble, this development should settle it. I’m late to this important story broken this morning by Bob Ivry of Bloomberg, but both Bill Black (who I interviewed just now) and I see this as a desperate (or at the very best, remarkably inept) move by Bank of America’s management.
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…
Read the rest of the story here. . .
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