http://www.nytimes.com/2010/10/20/business/20bond.html
So big institutions are buying up the debt for a nickle on the dollar banking on the 100% buyback because they think it's guaranteed that the taxpayer is going to fund a rescue plan for Bank of America?
That ain't even happening.
Crime doesn't pay and "WE" don't pay for crime.
BoA committed fraud and embezzlement, as did the rest of the investment banks.
They need to be liquidated to pay off their creditors and tried for their crimes, not given more money to carry on.
I don't care if their creditors get paid or not.
Indeed, the group that includes the Fed is one of two coalitions that is gearing up for a fight with the banks.
It also makes for some strange bedfellows. After all, it was the government that bailed out Bank of America — twice — during the financial crisis, the same government that includes the Fed.
There is risk too for the government, despite the Federal Reserve claims. If the banks are indeed forced to spend tens of billions to buy back securities, they could turn once again to the federal government for help.
