Big Banks Continue to Suck at the Government Teat With Never-Ending Stealth Bailouts

[Sexyeccentric1]

Open ended bailouts continuing...

The Shadow bail outs: How Big Banks bilk US towns and taxpayers

Must be nice to have unlimited amounts of cash and not have to play by the rules as everybody else.

Derivatives and swaps isn't that a sneaky way of saying "insurance"? That way they don't have to be regulated like most insurance..

Courts have dismissed complaints from aggrieved borrowers alleging securities fraud, ruling that interest-rate swaps are privately negotiated contracts, not securities; and “a deal is a deal.” So says contract law, strictly construed; but municipal governments and the taxpayers supporting them clearly have a claim in equity. The banks have made outrageous profits by capitalizing on their own misdeeds. They have already been paid several times over: first with taxpayer bailout money; then with nearly free loans from the Fed; then with fees, penalties and exaggerated losses imposed on municipalities and other counterparties under the interest rate swaps themselves.

The vici code is dead.. the vici code is dead.. all along with those traditional bankers..the vici code is dead!

[Sexyeccentric1]

From the "Greedy Bastards" Book

"They didn’t call it insurance, however, as insurance is carefully regulated by the government to make sure that insurers hold on to enough money to pay claims against them. In other words, traditional insurance, like traditional lending, had capital requirements. To get around this obstacle, the investment banks called their insurance derivatives, or credit default swaps. Originally, these “swaps” were designed for businesses that depended on commodities that had volatile prices. Imagine that you sold heating oil to residential customers. If the price shot up too quickly, some customers on fixed incomes, such as pensioners, might not be able to afford to heat their homes. Buying into the derivatives market allowed you to buy a kind of insurance policy: if the price shot up, you would receive a payment on your insurance policy and that money would offset your increased costs. You had effectively swapped responsibility for a price rise with someone else and you could now offer your customers a more consistent price over time. That meant you would lose fewer customers to fluctuations in price. But once a “swaps” market had been created, outsiders could buy in, too. These outsiders were like bettors at a race track: they were not running in the race, they were only looking for an opportunity to gamble. Banks and other companies began to “swap” responsibility for defaults on the loans they had bundled into CDOs. It was less like traditional insurance and more like a betting parlor: companies and banks would place bets about which banks would default on these new forms of bundled loans. The derivatives or “swaps” market mixed both kinds of buyers— those using the market to even out their business costs and those looking for someplace to gamble".

[Sexyeccentric1]

You do realize that the banking practices that lead us into the 2008 financial crisis are still going on today? Why do you think there are all these stealth bailouts going on? Think about it..

[Grifter]

No no Frank Dodd fixed all this. We are totally safe now.

[Gotyour6]

They know whats best. Move along, nothing to see here.

They are the goverment, they are here to help.

[LovingKayla]

It's raining hearts and flowers!!!! Look at the pretty colors.



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[Sexyeccentric1]

The Frank Dodd Reform was a step in the right direction but in my opinion simply did not go far enough.

[LovingKayla]

Does it make me the super villain if I say I understand the mind set of " kill every one and start over.". Oh opps that makes me able to understand the thought process of a mad man. Well wtf does that make me.

Oh no run it boys. I feel. myself. pulled. Arrrrgh. For the. Dark. Side. Ahhhhhhhhhhh SAVE YOURSELVES!!!