Oh Shit John Key’s not going to like this: Goodbye Bank Of America Settlement

BofA bought Merrill Lynch in September 2008. Rumours abound that Paulson the then Goldman Sachs Secretary of treasury pressured the BofA to buy Merrill Lynch and a good part of the TARP bailout went into making up for the losses of Merrill Lynch. 

Merrill Lynch had been a trailblazer in the Derivatives and Bonds trade in the 90s under the directorship of none other then our own John Key who was the Managing director of the European department for Bonds and Derivatives for Merrill Lynch. It is of course the Derivatives trade which is now collapsing the financial system and it seems the chickens are coming home to roost.

With the deregulation and repeal of the Glass Steagall act in 21998 the path for whole sale speculation was opened up and the housing bubble was in full swing with the sale of fraudulent liar loans and mortgages which the banks knew full well would never be paid back and which they sold on to Pension funds and other unsuspecting suckers. Merrill Lynch was one of the banks most exposed to the collapse when it finally came and BofA who bought the Bank under pressure of Paulson bought with it the pile of worthless junk mouldering in its safes and all that paper is now BofA’s headache and the pain is becoming unbearable wh the bank being sued for it’s foreclosure policies and the fraudulently sold mortgages of Merrill Lynch.

The bank put $ 8.8 billion aside for the fine they expected which is a fraction of the plunder and loot they gained but the FDIC is not happy and wants more information and isight in the total amounts of money involved.

Banks hate one thing more then lending money out to small businesses and that is having someone look at their books especially if those book have been cooked as have the BofA’s.

Woefully underfunded and already having lost $ 70 billion of it’s books because their shares tanked when their woes became public I’m afraid this could very well spell the end for BofA. Even with Warren Buffett’s pitiful $ 5 billion publicity stunt.

The good news is that if BofA goes down a great deal of John Key’s ill gotten gain will go down too as a large chunk of his wealth is still in the banks already much diminished shares!!! And that should make all the struggling “little” people of NZ very happy!

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