Groups protest transfer of risky assets as back-door bailout of Bank of America
For Immediate Release
October 21, 2011
Contact: Gordon Whitman, PICO (202) 427-2992
Small business, community and faith groups protest Fed's decision to allow Bank of America to transfer risky assets to FDIC-insured bank
Washington, DC - New Bottom Line - a coalition of small business, community and faith organizations - wrote President Obama, Fed Chair Bernanke, Treasury Secretary Geithner and FDIC Chair Gruenberg protesting a secretive decision to allow Bank of America's holding company to transfer risky derivative assets from Merrill Lynch to its FDIC-insured bank.
The decision by the Federal Reserve once again allows a tottering financial institution to transfer risk onto American taxpayers. The risk is that taxpayers will be left holding the bag. New Bottom Line called the move "a back-door bail-out" of Bank of America.
New Bottom Line calls on the Administration to revoke the exemption. It also sets out four steps that must be taken to protect homeowners and communities in the event of a Bank of America meltdown.