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Tuesday, Oct 18
2011, 8:00 PM
If you've ever doubted whether Bank of America (BAC) is in serious trouble, this development...
If you've ever doubted whether Bank of America (BAC) is in serious trouble, this development should settle it, says Naked Capitalism's Yves Smith. In a move to reduce the bank's holding company exposure, it recently moved a large tranche of its worst performing derivatives from its Merrill Lynch unit to a subsidiary flush with taxpayer insured deposits. The Fed has signaled it favors the move, but the FDIC, which will have to pay off depositors in the event of a bank failure, objects.