Fed, BofA conspire to steal a trillion bucks

By Dominique de Kevelioc de Bailleul

Maybe the OWS ragtag protesters are onto something after all.

The latest example of outright fraud and corruption between the Fed and its troubled member Bank of America comes from Bloomberg News, which reported that BofA executives transferred up to $22 trillion (the amount actually transferred is not as yet known) of tier-3 derivative obligations from its Merrill Lynch subsidiary to the parent company Bank of America Holding company.

Why is this a fraudulent transaction designed to rip off Americans—again?! In the case of insolvency (a matter of when, not if), Merrill Lynch won’t qualify for FDIC protection under the law, but if BofA drops like a Lehman stone, the FDIC will need to step in to protect depositors accounts—which will be used to backstop losses on the derivatives, then BofA would have to be bailed out by the FDIC after impairment to depositor accounts.

“The bank holding company (BAC) is moving troubled assets held by an entity not insured by the public (Merrill Lynch) to the Bank of America, which is insured by the public,” stated William (Bill) Black, famed lynchpin behind the exposure of the notorious Keating Five S&L scandal during the 80s.

Here’s why Black’s assessment of BofA’s larcenous maneuver as an outright criminal one can be taken to the bank, sort of speak.

American journalist and former White House Press Secretary wrote of Bill Black, “[Bill Black] the former Director of the Institute for Fraud Prevention now teaches Economics and Law at the University of Missouri, Kansas City. During the savings and loan crisis, it was Black who accused then-house speaker Jim Wright and five US Senators, including John Glenn and John McCain, of doing favors for the S&L’s in exchange for contributions and other perks.”

“The senators got off with a slap on the wrist, but so enraged was one of those bankers, Charles Keating — after whom the senate’s so-called ‘Keating Five’ were named — he sent a memo that read, in part, ‘get Black — kill him dead.’ Metaphorically, of course. Of course.”

So, Bill Black knows a snake when he sees one, and is intimately familiar with banking laws as they specifically relate to public protection from those slithering in the grass characters that infest the swamps of the US banking system.

BofA’s new CEO Brian Moynihan and his spanking new $5 billion investor Warren Buffett don’t look like sociopaths, do they? Did Charles Keating look like a sociopath during the S&L criminal trials? How about Robert Ruben, Alan Greenspan, Dick Cheney and George Dubya? They wear ties and have learned to speak well under pressure. Greenspan, in particular, was stupendous baffling various policymakers with his numerous twists and turns of his prepared testimony and follow up inquiries by a mostly incompetent Congressional committees. Congressman Ron Paul, the one feared by each one of these snakes, said in an interview that one of his fellow committee members was unaware that the US had dropped from a gold standard in 1971.

As Infowars.com Alex Jones points out, the US system of government has turned into a revolving door of sociopaths—out goes the old boss, in comes the new, he’s fond of saying on occasion during his radio broadcast. So it’s no surprise, then, that the previous sociopaths have been replaced by a new set of sociopaths, Timothy Geithner, Ben Bernanke, Joe Bidden and Barrack Obama.

Back to BofA: Buffett most certainly understood the implications of what his bathtub rubber ducky had suggesting to him during his eureka bathtub moment which told this tired old con artist to buy a junk bank against all his brilliant investing principles. Buffett is truly clever; he sports that avuncular charm and wit to compliment a disciplined investor’s acumen and patience, as he waits like a shark for the slightest scent of blood in the water—a sort of black hat version of 1970′s TV character Lt. Columbo.

“Mumbles” Moynihan, too, has that look and feel, speaks and carries on with an overall affect during public appearances more consistent with a guy you’d see mumbling on a bar stool at a union hall over a Pabst Blue Ribbon with his college football buddies.

But let’s consider some of the attributes of a sociopath and ponder what people such as Alex Jones, OWS protesters, G. Edward Griffin, DTC expert Bud Burrell, Bill Black and so many others who get dirty fighting this filth must go though each and every day. The darnedest thing about sociopaths is that they’re everywhere, infesting our daily lives in ways we may not readily be cognizant of—and that’s the whole idea—the pursuit of the perfect crime.

“Psychopath [now referred to as sociopath]. We hear the word and images of Bernardo, Manson and Dahmer pop into our heads; no doubt Ted Bundy too. But they’re the bottom of the barrel — most of the two million psychopaths in North America aren’t murderers. They’re our friends, lovers and co-workers. They’re outgoing and persuasive, dazzling you with charm and flattery. Often you aren’t even aware they’ve taken you for a ride — until it’s too late.”

Clearly the Fed and Moynihan’s board of directors are familiar with US banking laws. With scrutiny so high among not only those trained and paid to watchdog these parasites, the lay public is now taking notice more than ever before, spreading the word in their own language—not the language of Wall Street’s half truths, slight-of-hand prepared text testimonies, bogus conference calls and phony balance sheets. But for Black, the egregious violation of law this time drops his jaw.

Bill Black wrote of BofA’s 3-card Monte play, “The banking rules are designed to prevent that [tier asset shuffling between legal entities] because they are designed to protect the FDIC insurance fund (which the Treasury guarantees).”

Clearly more irritated and more acting in a manner appropriate through her use of words, Susan Webber, the principal of Aurora Advisors, Inc., who pens under the name Yves Smith of NakeCapitalism.com writes:

“This is yet another joint effort by Washington and Wall Street to screw the American people, and to trample on the rule of law.”

“The American people will be stuck in nightmare of a never-ending depression (yes, we are currently in a depression) and fascism (or socialism, if you prefer that term) unless we stand up to the overly-powerful Fed and the too big to fail banks.”

The tin-foil hats were right all along about the JP Morgan manipulation of the gold price, thanks to GATA and a WikiLeaks cable about China’s knowledge of the JP Morgan scheme, and now, in the face of OWS protests spreading across the globe, BofA pulls a stunt like this.  Just as GATA’s work has been validated as fact, not conspiratorial garbage, OWS is about to go completely mainstream as well.

Think about it for a moment, it’s becoming a well-known slogan that, the Federal Reserve is no more federal than Federal Express; its name sounds federal, its buildings look federal, and its members look and sound legitimate and trustworthy, playing consummate roles of trusted members of the community.

Didn’t John Wayne Gacy gain easy access to children by posing as a clown?