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Regulators Split Over BoFA Moving Merrill Derivatives

It’s too bad that the regulators are “split,” because from the sound of it, this could be a very, very damaging move to US Taxpayers in favor of Bank of America.

Unless you’re an expert, it could be difficult to sort out the details, but the Fed and the Banks are up to their old tricks of deals few understand and even fewer know exist.

The Office of the Comptroller of the Currency (OCC), established by the National Currency Act of 1863 to protect the currency and to ensure the safety and soundness of the banking system, issued a seemingly simplistic and equally incomprehensible report for 2011 Q2.

Bank of America’s holding company — the parent of both the retail bank and the Merrill Lynch securities unit — held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. About $53 trillion, or 71 percent, were within Bank of America NA, according to the data, which represent the notional values of the trades.

It’s that $75 T-T-T-Trillion of derivatives, the same class of toxic assets that blew up the world economy in 2008, being moved into the BoFA commercial banking division, that seems to threaten the stability of the banking system and the ability of taxpayers to insure assets/deposits through the FDIC.

Paging Bernie Sanders! Senator Sanders, please report to Senate Banking and Finance Committee hearing. It’s an emergency! Paging Senator Bernie Sanders…

via Bloomberg.