Comments on: BofA puts taxpayers on the hook for Merrill’s derivatives http://blogs.reuters.com/felix-salmon/2011/10/20/bofa-puts-taxpayers-on-the-hook-for-merrills-derivatives/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Kristal Osterland http://blogs.reuters.com/felix-salmon/2011/10/20/bofa-puts-taxpayers-on-the-hook-for-merrills-derivatives/comment-page-1/#comment-55362 Sat, 18 Oct 2014 00:11:25 +0000 http://blogs.reuters.com/felix-salmon/?p=10618#comment-55362 Casana I was suggested this blog by my cousin. I’m not sure whether this post is written by him as no one else know such detailed about my problem. You are amazing! Thanks! your article about image1

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2011/10/20/bofa-puts-taxpayers-on-the-hook-for-merrills-derivatives/comment-page-1/#comment-32287 Tue, 25 Oct 2011 05:40:39 +0000 http://blogs.reuters.com/felix-salmon/?p=10618#comment-32287 IanFraser, well frankly, Yves Smith is just dishonest. I have difficulty believing that she is unaware that she is making factually incorrect statements, especially given she is strongly financially motivated to make them.

I am also afraid to say that, yes, I don’t trust what I read in any of those publications. Bloomberg, for instance, seems to have just gone downhill since buying Businessweek. Reuters has been dodgy for as long as I have been around, not only in terms of letting the rather homogeneous ideology of the journalists shine through but in employing people with a shocking ignorance of the basics of their chosen field. Ft was always a mix. One of the reasons I like this blog is that it links to original documents – I tend to skip the commentary and read them.

rootless_e, I think this is at the base of the issue of journalism. It might seem there are “thousands of financial journalists” beavering away, acting as a natural overlapping fact checking machine and I am sure they like to see themselves as harden, cynical men and women who take nothing on faith but the reality is that most of them just cut and paste from each other. I have seen over and over, a single dodgy article become “fact” from sheer repetition from other sources.

I wouldn’t mind except there are real consequences for such nonsense. One only has to look at the focus of financial regulation to see how bad “journalism” can impact the world. In particular, the focus on prop trading vs say money market funds or capital requirement vs liquidity management.

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By: rootless_e http://blogs.reuters.com/felix-salmon/2011/10/20/bofa-puts-taxpayers-on-the-hook-for-merrills-derivatives/comment-page-1/#comment-32275 Tue, 25 Oct 2011 01:23:11 +0000 http://blogs.reuters.com/felix-salmon/?p=10618#comment-32275 Danny Black: I still give Nomi Prins the prize for factesque indignation. She wrote once that the Fed had trillions of dollars of agency mortgage bonds for which there was no bidder. I asked her what she could possibly mean, since the agency bond market is not defunct and she said she had not meant it literally but had instead meant “no bidder” in the sense one might say “raining cats and dogs”. You could not make stuff like that up.

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By: rootless_e http://blogs.reuters.com/felix-salmon/2011/10/20/bofa-puts-taxpayers-on-the-hook-for-merrills-derivatives/comment-page-1/#comment-32274 Tue, 25 Oct 2011 01:14:38 +0000 http://blogs.reuters.com/felix-salmon/?p=10618#comment-32274 What’s remarkable about Ian Fraser’s (if that’s who he really is) remarks is that the obvious level of expertise displayed by Alea only makes him mad – because his pre-existing narrative is being contradicted.

I suggest a little introspection about your need to lead with personal attack when exposed to dissent from the sad group think that passes for “left wing” these days.

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By: rootless_e http://blogs.reuters.com/felix-salmon/2011/10/20/bofa-puts-taxpayers-on-the-hook-for-merrills-derivatives/comment-page-1/#comment-32273 Tue, 25 Oct 2011 01:11:26 +0000 http://blogs.reuters.com/felix-salmon/?p=10618#comment-32273 Ian Fraser: The person who has to use the word “obamabot” in lieu of an argument is the one lacking in credibility, not the person who bothered to do some research. As for the alias, I’m not ashamed to stand with James Madison.

“The mere fact the FDIC opposed this move, while the Fed approved it, speaks volumes doesn’t it?”

No. Your idea of journalism might be to extrapolate motives from anonymous comments about what someone in an agency might have said, but mine does not.

I like your quoting of a number of worthless sources,all of whom go back to a misunderstanding of the same over-sensationalized Bloomberg article, none of whom seem to have bothered to read Dodd-Frank or think about the meaning of both BoA and JP Morgan already having most of their derivative positions in the depository bank might mean. I suppose, however, that if it is widely reported, it’s factesque and that’s good enough for some.

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By: alea http://blogs.reuters.com/felix-salmon/2011/10/20/bofa-puts-taxpayers-on-the-hook-for-merrills-derivatives/comment-page-1/#comment-32264 Mon, 24 Oct 2011 22:44:52 +0000 http://blogs.reuters.com/felix-salmon/?p=10618#comment-32264 Mr Ian Fraser: this is not about wisdom, this is about FACTS.
“The derivatives aren’t themselves insured by the FDIC, but they have extremely senior status, which means that the bank can use its deposit base to pay off derivatives counter parties.”
FALSE. PERIOD.

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By: IanFraser http://blogs.reuters.com/felix-salmon/2011/10/20/bofa-puts-taxpayers-on-the-hook-for-merrills-derivatives/comment-page-1/#comment-32263 Mon, 24 Oct 2011 22:32:29 +0000 http://blogs.reuters.com/felix-salmon/?p=10618#comment-32263 btw Danny_Black I was interested to note that one of your favoured bloggers, Bond Girl, not only hangs her entire blog post on the derivatives switch controversy (https://self-evident.org/?p=933) on a Bloomberg story, but also uncritically cites Yves Smith.

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By: IanFraser http://blogs.reuters.com/felix-salmon/2011/10/20/bofa-puts-taxpayers-on-the-hook-for-merrills-derivatives/comment-page-1/#comment-32262 Mon, 24 Oct 2011 22:06:32 +0000 http://blogs.reuters.com/felix-salmon/?p=10618#comment-32262 Of course I know it’s an alias. And her real identity is well known. The bitchiness of some of the above comments surprises me.
Nobody has a monopoly of wisdom. Some may like to think they do, but they’re only fooling themselves.
Also Danny_Black, from your comment above I assume that you never trust anything you read on Dow Jones, Bloomberg, Reuters, Wall Street Journal, The Economist, Financial Times etc, etc and that you happily discount the output of the thousands of financial journalists they employ?

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2011/10/20/bofa-puts-taxpayers-on-the-hook-for-merrills-derivatives/comment-page-1/#comment-32261 Mon, 24 Oct 2011 21:31:05 +0000 http://blogs.reuters.com/felix-salmon/?p=10618#comment-32261 rootless_e, did Yves Smith ever have any credibility? Always seemed to me that she did a good job of cynically cashing in on the mood post crash, along with others ( cough PragCap, cough Barry Ritholz ).

IanFraser, firstly you know Yves Smith is an alias right? Secondly, “journalists” use their real names all the time despite being consistently wrong. I would trust an Alea, bondgirl, economicsofcontempt and kiddynamite each and every single time over any financial journalist.

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By: IanFraser http://blogs.reuters.com/felix-salmon/2011/10/20/bofa-puts-taxpayers-on-the-hook-for-merrills-derivatives/comment-page-1/#comment-32258 Mon, 24 Oct 2011 20:44:08 +0000 http://blogs.reuters.com/felix-salmon/?p=10618#comment-32258 Seems to me that Alea_ and Rootless_e, whoever they may be, do protest too much. The mere fact the FDIC opposed this move, while the Fed approved it, speaks volumes doesn’t it? Also Lisa Pollock has explained precisely why the manoeuvre leaves such a bad taste in the mouth in today’s FTAlphaville blog post http://ftalphaville.ft.com/blog/2011/10/ 24/710126/merrill-lynchs-derivatives-set -sail-for-safe-harbors/ As Simon Johnson put it on Bloomberg today the manoeuvre “condones the continuation, or perhaps escalation, of taxpayer-backed gambling on a grand scale” http://www.businessweek.com/news/2011-10 -23/bank-of-america-is-too-much-of-a-beh emoth-to-fail-simon-johnson.html This is not something to be welcomed and if Alea and the Obamabot Rootless_e believe it to be such a wonderful move the very least they could is to do so publicly rather than masquerading behind aliases.

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