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Dr. Fly

18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.

Bank of America is Fucking Retarded: Glitch Allows Detroit Man Withdraw $1.5 Million From ATM

Ronald Page seemingly had it made when Bank of America unintentionally changed his account status, allowing the 55-year-old man to make unlimited ATM cash overdraft withdrawals.

But ABC News reports that Page, who in reality had only $300 in his checking account, used the accidental loophole to withdraw more than $1.5 million—losing it all on gambling.

And even worse for Page, the U.S. Attorney’s Office in Detroit says he is now facing 15 months in prison after pleading guilty to charges of theft of bank funds, $1,543,104 in total between December 1, 2008 and May 31, 2009.

“In this case, the bank’s glitch allowed the defendant to lose a significant amount of money that was not even his in the first place,” reads the U.S. Attorney’s sentencing memorandum, obtained by ABC. “The fact that defendant acted on an impulse does not minimize the seriousness of his conduct and the need for a custodial sentence.”

The day the Bank of America glitch went into effect, Page reportedly withdrew $312,000 from ATMs at the Greektown Casino in Detroit and an additional $51,727 from the MGM Grand Casino. Bank of America placed a hold on his account 17 days later, but he had already withdrawn $1.5 million by that point.

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China Offers $43 Billion For Global Bailout

LOS CABOS, Mexico (Reuters) – China on Monday offered $43 billion to the IMF’s crisis-fighting reserves, joining other major emerging markets in pledging new funds to shore up the global financial system while demanding reforms to give the developing world more clout at the IMF.

China’s contribution, confirmed by a Group of 20 official, follows Russia’s pledge of $10 billion and is in line with a promise to supply the International Monetary Fund with extra firepower to help cope with the fallout from Europe’s debt crisis.

The leaders of Brazil, Russia, India, China and South Africa, meeting before a Group of 20 summit in Mexico, said they “agreed to enhance their own contributions to the IMF.”

They sought to tie the funds to long-delayed reforms that would give the developing world more say at the Washington-based Fund.

“These new contributions are being made in anticipation that all the reforms agreed upon in 2010 will be fully implemented in a timely manner, including a comprehensive reform of voting power and reform of quota shares,” the BRICS leaders said in a joint statement.

G20 finance ministers agreed in April to give the IMF $430 billion in new resources, but the breakdown of contributions has not been formally announced. The bulk of the extra IMF money will come from Europe, while the United States, which would need approval from a deeply split Congress, is not contributing.

In their public remarks in Los Cabos, Chinese officials declined to discuss sums and stressed the need to implement IMF quota reforms agreed in 2010.

The five BRICS nations represent 43 percent of the world’s population and about 18 percent of global economic output. They have about $4 trillion in combined reserves, with the lion’s share held by export powerhouse China.

Emerging economies have long demanded more say at institutions like the IMF to reflect their growing clout. Their frustrations have grown with the likely delay in implementing the 2010 deal that would boost their voting power and make China the third-largest voting member of the IMF.

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France’s Hollande Seeks $100 Billion in Stimulus Funding

The “leveraged” cash is to come from a combination of short-term growth instruments such as project bonds, reallocated EU structural funds and fresh investment capital from the European Investment Bank.

But some European diplomats have already reacted scathingly to the plan, suggesting only a fraction – about €10bn – would be “new money” designed to make the proposal an easy-to-agree “victory” for new French president Francois Hollande.

Mr Hollande submitted his ideas to EU partners and the European Council a few days ago ahead of a Group of 20 summit in Mexico today and tomorrow. Most of Mr Hollande’s proposals for the €120bn will be in a “compact for growth and jobs” to be agreed by EU leaders at a Brussels summit on June 28.

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