Monday, November 14, 2011

Bank of America - Coming Around for Seconds

In the recent Wall Street collapse, B of A took advantage of the crisis to bulk up its empire. Using $45 billion in bailout money from us taxpayers, the giant gobbled up two troubled financial powers, investment house Merrill Lynch and mortgage hustler Countrywide Financial. It is now choking on these mergers, as well as its own executive incompetence. Its credit rating has been downgraded, its stock price has plummeted, its CEO is desperately trying to raise cash (and save his job) by firing 36,000 employees, and it has infuriated its own customers by trying to impose a $5 monthly fee on debit card users.


[CEO Brian Moynihan is] trying to transfer a mess of bad investments now held by the Merrill Lynch subsidiary into B of A's consumer banking unit. Why? Because that unit has about a trillion dollars in customer deposits that are insured by Uncle Sam. So, if Merrill's sorry investments cause the banking unit to fail, the feds would be there to rescue it.


Why should we let these failed capitalists turn into corporate socialists every time they get in trouble?

  Jim Hightower

Uh…they own us?

....but hey, do what you will anyway.

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