Lessons from the Crash

Apparently Beranke has learned nothing, despite what he says in his speech yesterday in Boston. This is moral hazard at the highest level. ML is moving risk from an uninsured entity to an insured one, after the fact. Who will lose? You guessed it, you, not the ML traders or BAC bondholders.

Mish's Global Economic Trend Analysis: Bank of America Moves a Merrill Lynch Derivatives Unit to an Insured Deposits Unit (Putting FDIC at Risk); Fed approves Move, FDIC Doesn't