If tons of taxpayer dollars are going to banks that look poor domestically, but are actually shifting assets to subsidiaries, I would view this as immoral and possibly criminal. To the extent bailout money became bonuses, I would also protest.
Please share widely!
Well this question is slightly more complicated then you may think. First this is a list of BoA’s publicly listed Subs. Now many of them operate world wide and even more concerning is many of the banks investors that have seen their holdings in Bank fall are the ones who are at risk if the bank fails so Tarp money is to go to keep the bank afloat and to assure these investors from around the world that the investment is safe and sound and they will get their money back if the worst happens. We are not talking about people who have accounts here although I do believe you will find the investors are among depositors. So you see Most of the Large Banks that have gotten Tarp are using funds to assure local investors and foreign investors and I dear say the mix is different with each bank. Many of the big investors are from Europe, Asia and the Middle East. I know for a fact that State Street had a large position in South America for years and likely still does part of their problem may be directly associated with the slip in Brazil’s economy.
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p>I hope this ads some light to the issue. Unfortunately it is like the Mortgage Bonds it is such a slice and dice it is some times hard to tell who has what and this is no less a bowl of never ending spaghetti then the mortgages are.
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p>May I throw out a brief statement on your thread? If you look closely at the Foreclosure situation how much of the loses these banks have are from the Mortgages and how much is from these now worthless insurance policies (credit default swaps) that they purchased and resold. If you assume a 10% foreclosure the numbers of dollars reported lost and now the total dollars invested by Tarp and FDIC and Federal Reserve we are way past the loses on the mortgage defaults.
I believe we are moving into a new phase in the crisis that has two major components fist is Credit Card Defaults and Commercial Loan Defaults, add in the inability of reinsurance industry and AIG to make good the Credit Default Swaps to investors and we are likely to see a continuation of a frozen loan industry still trying to find ways to turn profit to make good on bad investments they cooked up and sold as AAA bonds. While Main Street counties to get little more then a bill.
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p>Subsidiaries/Affiliates
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p>BA Merchant Services LLC
Banc of America Investment Services, Inc.
Banc of America Securities LLC
Columbia Management Group, LLC
Countrywide Financial Corporation
Balboa Insurance Group, Inc.
Countrywide Home Loans, Inc.
Countrywide KB Home Loans, LLC
Finacity Corporation
Merrill Lynch & Co., Inc.
First Republic Bank
First Republic Preferred Capital Corporation
Merrill Lynch Bank (Suisse) S.A.
Merrill Lynch Credit Corporation
Merrill Lynch Europe PLC
Premium Credit Limited
U.S. Trust, Bank of America Private Wealth Management
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Sigh – just what I was afraid of. Plenty of musical chairs to play cook the balance sheets.