You may remember back in 2007, the Federal Reserve changed the rules and allowedÂ some banks to use a greater amount of moneyÂ borrowed from the discount window to help their brokerage affiliates. In fact, this amount was 25 billion for Bank of Amerika. The Fed also began accepting more risky assets as collateral, with Bank of Amerika participating. Mish had a good article about it here: Now We Know Who and Why.
On Monday, July 21st, Bank of Amerika was one of 18 other banks on the SEC’s list for restricted short sales. Presumably, this was done so that the share prices would rise and allow the banks access to capital at better rates. Or, they were truly in danger of IndyMacing, and the SEC wanted to prevent another collapse.
Bank of AmerikaÂ reported earnings on the same day of 3.41 billion.
Today, Bank of Amerika announces a 3.75 billion stock repurchase plan.
I have to ask, what the fuck country am I living in?
Pinky Paulson and Helicopter Ben have allowed Bank of Amerika to borrow my money and yours, with no risk premium, so they could prop up their own brokerage affiliates. The SEC has changed the rules to provide Bank of Amerika cash for their risky assets, andÂ protection from short sellers. And now, it appears that Bank of Amerika is doing quite well, and has simply used my money and yours, with no premium, to theÂ benefit of the corporation and their large investors.
I am so pissed off at this fuckery, I am unable to coherently express myself. I am left with the distinct feeling that our government is from Mars. I am also left with a good understanding of why so many Americans do not trust corporations, CEOs, and “the rich.”Comments »