Why is Bank of America CEO Brian Moynihan scratching his head? He just cant believe how easy it is to rip off the USA taxpayer!
Last week, federal bank regulators allowed Bank of America to transfer the riskiest of its crumbling assets from an uninsured Merrill Lynch division to the deposit-insured and discount-window-eligible Bancorp division.
Simon Johnson from MIT wrote, “The move puts the Federal Deposit Insurance Corp. on the hook for any losses…because the agency can tap a U.S. Treasury line of credit if the fund runs dry, taxpayers could be at risk, too.”
This is an unacceptable shift of Wall Street risk onto the American taxpayers, and some are saying the beginning of another backdoor bailout for Bank of America.