Well, BAC borrowed $15 billion an awful lot. Maybe the same $15 billion.
Look at the face value of what they posted as collateral.
$127 billion - or in one case $185 billion - to borrow $15 billion?
What was being posted there - that's a more than 90% haircut!
That's a fairly clear declaration by The Fed that these "Assets" were worth no more than $15 billion, right? After all, that's all they got credit for when posting their collateral.
Ok, two immediate questions:
What was that, and at what value was that carried on their balance sheet at the time?
Where is it now and what value is it being carried at TODAY on their balance sheet?
Ah, Kemosabe, now we get to a problem, don't we? See, if BAC had to borrow $15 billion, why would they post collateral at that sort of haircut? Further, that's a God-Awful loss embedded in those instruments that's being assumed by the NY Fed and BOG and we damn well ought to know through their quarterly reports where that presumed loss of value went and where it was.
There's a problem of course - BAC never reported that sort of loss any time during this "crisis." That leaves me with the question as to where these so-called "assets" are now, what they're marked at, and whether we're still dealing with massive and outrageously bogus "marks" - that is, claims of value - in these securities!
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