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Occupy Wall Street May Address Looting by Bank of America and Federal Reserve
Many people are furious that the Federal Reserve and Bank of America have initiated a coup to dump billions of dollars of losses on the American people (and see this).
Many are suggesting that the “Occupy” protesters rally to stop this robbery.
One of the top stories currently on Reddit (one of the top social media sites), is:
I understand that the Occupy protesters are, in fact, currently debating making a statement on this theft.
Currently, there are two competing draft statements. This one is from someone very savvy on understanding how the average American thinks:
A portion of the 53 trillion dollars of derivatives (yes that’s with a t, about the size of the entire global economy) transferred to Bank of America’s parent company from Merrill Lynch in 2008 has recently been transferred to Bank of America.
Derivatives contracts in a bank are paid before anyone else gets paid.
Therefore, these derivatives contracts would be paid before depositors receive their money. These people just cut in front of you.
It's very simple, the reason that banks and trading houses were originally separated was to prevent this sort of thing. What’s really going to happen is that the government is going to end up bailing out the FDIC … so this will end up being a government bailout.
You’ll end up getting shafted, either by derivatives holders cutting in front of you or by your having to bail out the FDIC so it can bail out banks depositors. Either way, this is yet another instance of looting by the big banks and big government.
Just say no … don’t let this stand.
And this one is from two people who are experts on the technical issues involved:
We denounce Bank of America’s transfer of high risk derivatives to its federally insured accounts. This is yet another example of systemically dangerous institutions, big banks like BofA and JPM, once again attempting to shift potentially substantial losses onto the backs of hardworking Americans. The fact that the Federal Reserve supports this action demonstrates Ben Bernanke’s complicity and/or gross incompetence in supporting the Wall Street elite at the expense of tax paying citizens.
Updates as they develop …
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70% of #OWS Supporters are Politically Independent
Conservative Groups Support Protests
Protests Are Wholly Non-Partisan
Really! You know, I could really use some ocean front property in AZ if you have some George...
Tater, I'm a conservative republican...while I don't support everything the OWS people are doing or everything they stand for I DO SUPPORT their opposition of the criminal banking cartel that exists. The bankers are the ones who caused the problem in the first place and after we bailed their fat asses out wth tax payer money they are laughing in their hirise offices as we all duke it out as a class struggle (which it is not). I just want to take every one of these fucking rip off motherfuckers and ask them if they obeyed the golden rule and then blow their brains out when they are caught lying, yet again. These guys and gals with their lack of morals and ethics (I don't care if the laws were changed in the last 20 years so they could steal and double deal with out breaking the new laws) need to be exterminated from society as the blood sucking vermin they are. Now don't get me wrong, thre are good bankers and responsible bankers as well and we need those folks. we just need to cull out the crooks.
Good thing "Precious" has a knack for spotting crooks. Heheh.
Right on.
"I don't care if the laws were changed in the last 20 years so they could steal and double deal with out breaking the new laws"
The law of fraud is ancient and hasn't been changed. Banksters need to be tried for all manner of criminal fraud. A good start would be the fraudulent sale of mortgage-backed securities that aren't mortgage-backed at all.
Neither Bush nor Obama has prosecuted any executive. Compare that with 1100+ executive convictions following the S&L scandal. Each political party is an unprincipled and craven disgrace.
I hear justice-abortions smell like coconut.
And you just thought it was the handsoap at the USDOG.
You've done a lot to get people to look at this in the most reasonable light possible. I've defended the movement here, but I think they've derailed. If it represented the 99%, they wouldn't be advocating things that soak 44.5% of us for the benefit of others. People are sick to the gills of paying every cent for millions of Americans, from the old to toddlers. We don't want to see starvation, but taxpayers want to see government cut to the bone. Any agitation for a larger or more aggressive government will fail to generate broad support. There are places where both the left and right agree. OWS would have vastly more credibility if it said, "These things we agree on. These first, then we'll see."
@ NoMas
they stink up every palce they "occupy"
Are these the stinkers you're talking about? NoMas, you're a troll and a stinky one at that.
http://www.youtube.com/watch?v=lpyTXGb3k3A
You mean 70% of OWS never paid any taxes?
I think that's what you meant to say TD(s)
I always wonder what facts people have to back up such claims.
if they really want to open up a can of worms............then bring up 911 and the subsequent coverup and the wars based upon lies.......oh yeh.............
Because it happened during an administration that is no longer in power, I do not feel it would be the best thing to do. Instead I would like them to bring up what led to Libya. How the busy rebels opened up a new central bank linked to the western banks just weeks into the civil war. How Gaddafi was trying to set up an African Union using a gold currency which would have made them unoppressable by the banking cartel.
I would love it if their grievances also asked for all troops home from Libya. I have requested to join their group that is working on these grievances, so I can try to add to it about Libya, and about the Fed.
head @ wall
- It is totally off-topic
- It would only serve as a big attack point for propaganda
Yeah great idea.... completely contradict what your movement stands for, and throw away the moral shield you have.
Reinvestigating 911 has it's place, but it's not the business of OWS.
technicslly speaking , 911 and wall street shenanigans are connected........
i noticed some palestinians attempting to cleave to our friends at ows...we shall see how that pans out...........my money says it goes nowhere.......
You are just a puppet of the Khazarians, HPD.
Your fate was decided long before you were born.
Admit it and join the winning team.
what team is that? The Las Vegas Virgins? The LAs Vegas Puritans?
What game do they play? Is their playing field the Sands or the Bellagio or Caesar's Palace?
The Furries at the Golden Nugget.
How does Bernanke get the authority to transfer risk from a private company to the US tax payer?
He doesn't, but then again the Federal Reserve Act is just that an Act, the reason it was not introduced as a proposed Constitutional Amendment was because it is so contrary to the Constitution. The Act takes the Congressional responsibility to COIN real money and places a non-Constitutional power in the hands of a Fiat Federal Reserve Mercantilist System that benefits this government and its power patrons.
I know it's gross, but it's been upheld by the Supremes repeatedly over the last 200 years or so (depending on which "central bank" of the US you consider the evil of your day).
Okay conservatives, time to play "Let's Make a Deal": Real campaign finance reform...for...eliminating the Fed Reserve? Work with me!
you had it right, and then you lost me. ..."...System that benefits this government"? How does it benefit the government? Assists in distributing the debt while deferring currency debasement? I can it that way, but in large it only benefits the "power patrons"...now the "power patrons" say they are that mysterious Constitutionally protected "minority"...the joke is on us.
Benefits the government in that they may spend more than they take in from taxes and pay off slowly with depreciating currency.
They get the benefit of the inflation tax.
It truly is a marriage. Banks and government are equal benefactors.
We the people, not so much.
pods
The US taxpayer gets it in the poop chute once again. Instead of shitting on police cars the OWS can start throwing it at BOA HQ's in Charlotte when the DNC is fully present and accounted for right after they let the Repub's know this country has already gone to shit. The cesspool is a result of both fake parties appearing to "help the people".
Because technically it's not transfering risk to the taxpayer. However, because of the realities, it is. Bernanke cares not about reality.
I thought this guy's comment was good (and his other one lower down), seems to know what he's talking about
I am a lawyer who has litigated FDIC receivership issues, and while I agree with much of what the cited source says, it is incorrect to claim that the 2005 bankruptcy law changes would apply if BofA went under. If BofA became insolvent, it would go into FDIC receivership, not bankruptcy.
This means -- first and foremost -- the FDIC insurance fund, which is funded by the banks, pays each depositor back, but only up to the $250k limit. So, if you have $1,000 in the bank, you'll get that back 100% no worries. But, for example, if you have $300k in BofA, then you would only get $250k back, and then have to get in line with other creditors for the balance.
Under our law, the order of priority for creditors of the failed bank is:
Since the institution is insolvent, none of these creditors are going to be paid back at 100%, but at a pro rata share as the circumstances determine (50 cents on the dollar, 80, 20 -- it all depends on what the assets of the insolvent bank can be liquidated for).
But I would say that the people who REALLY need to WORRY (other than people with deposits over the FDIC insurance cap) are THOSE WHO HAVE LOANS WITH BofA:
Basically, the FDIC receiver has more powers than a bankruptcy receiver, including "avoidance" powers. Under our law (specifically 12 USC sec. 1823(e), the codification of the D'Oench Duhme doctrine), the FDIC can void any modifications of loan terms not made when the insolvent bank acquired the asset.
What that means: Let's say you have a mortgage with BofA from way back and your interest rate was originally 10%, and then a few years later you agreed with BofA to change that rate to 5%, and it's all in writing, approved by the board, and you've been paying that lower rate on time, no problems, feeling great. Well, if BofA goes into FDIC receivership, then the FDIC can VOID that modification and seek to collect what you WOULD HAVE OWED under the ORIGINAL terms, in order to try and make creditors whole -- this goes for all loans held by BofA. That's the law.
tl;dr If you have more than $250 in BofA, get the extra out. If you have a loan with BofA that you have modified, your modification can be voided if BofA becomes insolvent.
...
2nd comment
"If those bets fall through, [FDIC], aka the taxpayer, will be stuck paying the bill."
To be clear, taxpayers would get stuck ONLY if BofA got a special bailout of some kind. Under NORMAL FDIC receivership laws, any creditors under those derivatives would fall in line after depositors.
What BofA is really trying to do is get their Moody's rating up, by having their banking subsidiary, which has liquid assets in the form of account holder's deposits, hold the derivatives... instead of the badly beat up investment banking division, Merrill Lynch. FYI, Merrill Lynch already got bailout money via it's insurance contracts with AIG -- that is, AIG got money to pay the insurance contracts from bailout funds.
Don't get me wrong, I think it's extremely dangerous to allow BofA to transfer these questionable "investment banking" assets to it's "commercial" banking division, but we shouldn't think that this automatically means taxpayers are backing these investments via FDIC.
The real risk is to BofA account holders and people with loans with BofA, as I explained in a post above.
Eerp...
Thanks for the factual write up. Refreshing to see an explanation I can understand.
Again thanks
Many thanks for your persective. BOA does hold and old mortgage of mine, so I am especially interested.
In fact, had I never have heard of OWS, I would be looking for some help making noise. As you acknowledege, the shift of debt onto the taxpayer is wrong.
Truly, this may be the one that breaks the proverbial camel's back. It's really easy to understand & impossible to properly justify. That the players are so perfect, and the size of the debt in dispute so large, and the timing so perfect for such a short fuse.....this just might be where very large part of the 99% really get with the concept of --- well, like Grand Theft Auto....know what I mean?
The DIF is insovlent. The Treasury has extended a line of credit. When BAC's deriviative exposure is realized, rather than taking down Merrill and the holding company, the DIF gets raided and the Treasury must bail out the DIF. It won't LOOK like a bailout of BAC, but it is, because taxpayers will get stuck for the bill, whereas they won't if the derviatives weren't transferred into the Bank.
BAC might have not worried about this 3 years ago, but now that there is no political will for an above-board, out front bailout, they have to do this, which forces the bailout, whether the FDIC or politicians like it or not.
FUCKING UNDERHANDED AND CRIMINAL.
How long can these scumbags hold their breath on these CDOs? It reminds me of this movie Vertical Limit, where a failed climber's safety line must be cut so he doesn't pull the rest of his team down with him. This is such a cluster @#$%!
I run an independent Wall Street Class Action claims site, www.wallstreetclassaction.com
There are over 1,000 members now, please sign up as we are building a knowledge sharing portal. it's we the people who will have to bring the responsible to justice, as our government has been effectively captured and capitulated to these ponzi barrons
Of all the outrageous crap in the history of the Global Financial Crisis™ show, this is the lowest trick of the tricksters. I am admittedly naive at times but could the banks really sink this low in public, naked for all to see? If they can pull this off then the mind runs wild with other crimes that beg to be committed.
They had no intention whatsoever of going public; only thanks to a whistleblower (ya know, the people Barack Obama hate the most) do we know anything about this.
http://www.bloomberg.com/news/2011-10-20/bank-of-america-bosses-find-fri...
If you want a picture of the future, imagine a tyrant's leg being broken as he tries to stomp the wrong face, forever.
Really, we don't have to put up with this shit. But we do have to down tools until shit gets sorted out.
Unless, of course, you are okay with your children, nephews, neices, parents, grandparents, whatever getting totally fucked by fucking morons with no more claim to your money than some guy holding a sign on a street corner.
What the fuck.
Give me a freaking break! The politicians are not going to stop these crooks! Stop doing business with the big banks!
Exactly, take your deposits elsewhere.
There are plenty of good small banks that probably don't charge as much in fees. In fact I am sure of it. The bank I have my business account with has not charged me any fees other than for check orders.
Drain em'. Bleed the Freak.
I switched to a local bank years ago but it was swallowed up by a regional bank last year. Now the charges for checking have gone up. Getting ready to switch to a credit union now!
Frankly, I'm blown away that the FDIC is even complaining.
Stop paying taxes!!! This should be the protest motto, this is our money and our future.
Shhhh!
The first rule of tax evasion club, is......
Joe Stack, RIP.
Who in the FUCK does BenJackoff BernASSnke think he is to allow this.
SOMEBODYS GOT TO STOP HIM GODDAMN IT. NOW HOLY JEZUS WTF OVER!!!
Remember that if a whistleblower would not have come forward, we wouldn't know jack shit about this story. So, BenJackOff thought everything would stay hunky-dory behind golden closed doors of the Club.
That said, I do not expect a srious investigation from the WhiteWashing House, nor the Bought-N-Paid-4 CONgress anytime soon. After all, we're talking about the biggest source of campaign cash around, a.k.a. the banksters.
Crooks dont rat on crooks; its professional courtesy.
we need to immediately launch an investigation into these derivative contracts as to what they are, the nature of their structure, their risks their interconnectedness, and the extend of their losses. as if fannie and freddie don't have enough losses on their toxic assets, what the hell is boa thinking holding these contracts for 3 years without raising capital? why weren't we told about it back in 2008? financial regulators have committed treason when they failed to disclose such important information to the public.
Like re-insurance and interest rate swaps, they were designed to spread risk over multiple entities in exchange for fees in order to buffer the impact of catastophic events both economic and natural.
In typical form, the gamblers (Wall Street, Bankers, Insurance Co's etc) took these useful instruments and turned them into a big casino where the notional value of the derivative instruments far exceeded the underlying value of the risks by a factor that at this point exceeds what any sane person would even consider.
Again in typical form, they conspired in a criminal conspiracy to increase the amount of underlying risk so they could increase the size of the casino.
We all eat shit, they get richer. What should we do about these "people"??
Because the crooks couldn't even utilise the FED to raise such reserves, as it would cause global hyperinflation and WWIII.
So they did nothing, hoping that the mark-to-make-believe, plus MMT combo, could white-wash all their sins away. As we all now clearly see, the predictions of TBTF zombies were more than accurate. So were the stifled warnings of festering toxic assets that were virtually ignored up to now.
The whole thing is changing-up a gear and the zombies are reflexively kicking their deckchairs around.
this was predicted long ago when there was talk of "paper money" instead of gold.
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