Five bank behemoths that hold the political system hostage


Sarah Jaffe and Joshua Holland list them (Bank of America, JP Morgan Chase, Citigroup, Wells Fargo, and Goldman Sachs) and explain why they are so bad and how they get their way.

Currently, Bank of America is engaged in yet another effort to swindle the taxpayers. When it took over Merrill Lynch it also acquired all the toxic derivatives the latter owned. Bank of America is an FDIC-insured institution, which means that its deposits are taxpayer-insured, while Merrill Lynch is not. Now Bank of America is apparently trying to quietly shift the Merrill Lynch liabilities over to Bank of America so that the taxpayers will bear whatever loss occurs,

Of course the Federal Reserve, which has already used enormous amounts of taxpayer funds to bail out the banks, supports the move but the FDIC is balking, fearing getting stuck with a huge bill.

Comments

  1. says

    Sadly this is yet another sign of the governments love affair with the banking sector and the many sacrifices made to keep the sector afloat. In my opinion the future profits of the banks should be used to repay the tax payer until all government assistance has been repaid.

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