|Even the Kraken wasn't too big|
This bank has been deemed a 'systematic risk' meaning if it goes down it takes the economy with it.
BofA has been running it's predatory gambling casino under a memorandum since 2009 where problems within the too-big-to-fail banking behemoth have been highlighted as being in it's governance, risk management, and slippery liquidity that eludes basic accounting.
Regulators have met with BofA's board in recent months warning they wanted to see more progress on compliance with the memorandum. If there is no progress and the bank has not been found to comply then regulators will take the memorandum from an informal order to formal and public action with intensified scrutiny and heavier restrictions.
The banks directors ague that BofA has met demands set out in the 2009 document. Apparently regulators aren't convinced that everything at Bank of America is rainbows and unicorns like they claim.
Bank of America has been propping itself up through credit default swaps and they were moving these radioactive assets from it's Merrill Lynch division plugging holes in it's banking arm. After getting a credit downgrade in September they have been effectively been using FDIC insured deposits as collateral to keep from appearing bankrupt. Regulators can pull the plug on any of the big zombie banks before everything blows- spreading what's called contagion from bank to bank.
Another downgrade by the ratings agencies would leave Bank of America having to come up with another 8 billion in collateral which would likely mean the end of the first too-big-to-fail banks to finally fall.
Even CEO Brian Moynihan had to admit Bank of America's glory days are over, and blames regulations and the economy for the "new normal" of decreased profitability, which really means customer gouging just doesn't pay off like it used to.
The Occupy movement has brought awareness to the sheeple. Folks are paying attention and are catching onto the schemes and scams that have become the standard business model of the Wall Street banking Cartels.
Currently the Justice Department is reviewing claims that the banking industry officials colluded on the debit card fee hike, which violates antitrust laws. Congressman Peter Welsh (D-Vt.) asked the Justice Dept. to investigate the banks after banking officials' public statements indicated that the banks may have coordinated the fees in order to make up for lost revenue.
We all know how well the debit card fee hike went over with the public. More than 650,000 people moved their money from the zombie banks to credit unions and community banks.
It seems back-lash is the new customer model towards corrupt and greedy business.
Serves them right.
Financiers and Politicians are masters at passing the buck. Everything good that happens is a reflection of their talent- but everything bad is blamed on someone or something else.
Especially when they get caught red-handed.