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d_e_solomon · 4855 days ago · link · · parent · post: BofA shifts all its CDO losses onto an FDIC (taxpayer) insured subsidiary
I haven't seen a credible source on the quality of the derivatives that were moved to Merril. According to Bloomberg http://www.bloomberg.com/news/2011-10-18/bofa-said-to-split-... one of the keys of Dodd-Frank prevent the movement of low quality securities to an entity that can access the Fed window or backed by the FDIC.
So if the quality of the assets is poor, then we should be outraged and need to string up the regulators and the bank. If the quality is okay, then I'm not sure if there is an issue.