Yikes, B of A shafting the taxpayer more than I thought

I’m fascinated by this guy Reggie Middleton. The brother looks to be a genius — I don’t know how else he manages to process such massive amounts of information and make calls that have been consistently correct, while he runs a wildly irreverent, almost flamboyant, blog. Reminds me of the hypothesis that Jews were the source of so many critical insights in the last century on account of their outsider status.  When it comes to the bigshot investment banking firms and capital market players, I’d say Reggie’s a true outsider.

Here he points out for Russian TV that a significant part of B of A’s derivatives portfolio consists of  CDS on Euro banks, and that this will be the channel through which the Greek default that almost everyone says is inevitable will hit US taxpayers. Another thank you to Benny and the Feds who overruled FDIC and approved moving the toxic dreck onto the retail bank’s balance sheet.

I should mention in passing that banking analyst Chris Whalen thinks that B of A is preparing for Chapter 11.

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