Bank Of America, JPMorgan Bar Crypto Purchases On Credit Card

Bank Of America, JP Morgan Bar Crypto Purchases On Credit Card:

The second largest US bank said it “will begin declining credit card transactions with known cryptocurrency exchanges” starting today.

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Bank of America Stumbles On A $51 Trillion Problem

Bank of America Stumbles On A $51 Trillion Problem:

“More than $51trillion at risk if rates vol spikes and yields move higher… we have seen the global fixed income market growing to the largest size it has ever been.”

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Forget Deutsche Bank, These 2 American Banks Are Now “The Most Systemically Dangerous In The World”

Forget Deutsche Bank, These 2 American Banks Are Now “The Most Systemically Dangerous In The World”:

Back in the summer we wrote about an IMF report that flagged Deutsche Bank as the “most important net contributor to systemic risks” (see “‘Deutsche Bank Poses The Greatest Risk To The Global Financial System’: IMF“).  Those who read our site frequently were likely not terribly surprised by the IMF’s conclusion.

Among the G-SIBs, Deutsche Bank appears to be the most important net contributor to systemic risks, followed by HSBC and Credit Suisse. In turn, Commerzbank, while an important player in Germany, does not appear to be a contributor to systemic risks globally. In general, Commerzbank tends to be the recipient of inward spillover from U.S. and European G-SIBs. The relative importance of Deutsche Bank underscores the importance of risk management, intense supervision of G-SIBs and the close monitoring of their cross-border exposures, as well as rapidly completing capacity to implement the new resolution regime.

That said, we suspect the latest ranking of global systemically important banks (G-SIBs) by the Financial Stability Board may be a bit more surprising to our readers, among others, as it features two of America’s largest banks right at the very top. 

Read moreForget Deutsche Bank, These 2 American Banks Are Now “The Most Systemically Dangerous In The World”

400 Animals Face Euthanasia After Bank Seizes Sanctuary, Evicts Owners

400 Animals Face Euthanasia After Bank Seizes Sanctuary, Evicts Owners:

Four hundred animals who live at an animal sanctuary in New Smyrna Beach, Florida may face euthanasia now that Bank of America has seized ownership of the property.

Tina Richardson has lived and paid rent at the property with her husband for years, and in that time, she has accumulated a large collection of miniature ponies, dogs, cats, goats, wild hogs, donkeys, roosters, turkeys, pigeons, raccoons, and opossums.

[I have] goats and chickens and ducks and 28 cats and seven dogs, and anything that wanders in here and finds a home. So it’s kind of hard to say what all I really have,” Richardson told local ABC affiliate, WFTV-9.

An earlier version of WFTV’s report said Fannie Mae, the notorious government-sponsored mortgage company, had taken ownership of the home. This reference can be verified through a version of the article aggregated by WIHO, a Florida news outlet.  However, the reference to Fannie Mae was eventually removed from the original article. Anti-Media asked the WFTV journalist, Lauren Seabrook, to clarify, and she confirmed the county said Bank of America now owns the property the Richardsons are vacating.

Read more400 Animals Face Euthanasia After Bank Seizes Sanctuary, Evicts Owners

BAML Admits Wrongdoing, Agrees To Pay $415 Million For “Misusing Customer Cash To Generate Profits”

BAML Admits Wrongdoing, Agrees To Pay $415 Million For “Misusing Customer Cash To Generate Profits”:

The SEC announced on Thursday that Bank of America’s Merrill Lynch unit admitted wrongdoing and has agreed to pay $415 million to settle charges that it “misused customer cash to generate profits for the firm.”

According to the statement, Merrill violated the SEC’s Consumer Protection Rule by misusing customer cash that rightfully should have been deposited in a reserve account, freeing up billions to finance its own trading activities as a result.

Read moreBAML Admits Wrongdoing, Agrees To Pay $415 Million For “Misusing Customer Cash To Generate Profits”

Bank Of America Set To Fire 8,000 As Banker Layoffs Accelerate

Bank Of America Set To Fire 8,000 As Banker Layoffs Accelerate:

Bank of America has announced that it will fire as many as 8,000 employees within its consumer division the FT reports.The core reason given for the headcount reduction in this instance is that digital banking is picking up the pace, and has reduced the need for “back office staff” and bank tellers.

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Financial Armageddon Approaches: U.S. Banks Have 247 Trillion Dollars Of Exposure To Derivatives

Nuclear-War

Financial Armageddon Approaches: U.S. Banks Have 247 Trillion Dollars Of Exposure To Derivatives:

Did you know that there are 5 “too big to fail” banks in the United States that each have exposure to derivatives contracts that is in excess of 30 trillion dollars?  Overall, the biggest U.S. banks collectively have more than 247 trillion dollars of exposure to derivatives contracts.  That is an amount of money that is more than 13 times the size of the U.S. national debt, and it is a ticking time bomb that could set off financial Armageddon at any moment.  Globally, the notional value of all outstanding derivatives contracts is a staggering 552.9 trillion dollars according to the Bank for International Settlements.  The bankers assure us that these financial instruments are far less risky than they sound, and that they have spread the risk around enough so that there is no way they could bring the entire system down.  But that is the thing about risk – you can try to spread it around as many ways as you can, but you can never eliminate it.  And when this derivatives bubble finally implodes, there won’t be enough money on the entire planet to fix it.

Read moreFinancial Armageddon Approaches: U.S. Banks Have 247 Trillion Dollars Of Exposure To Derivatives

Bank Of America Looks At Europe’s Record €2.6 Trillion In Negative-Yielding Debt, Is Shocked At What It Finds

BofA Looks At Europe’s Record €2.6 Trillion In Negative-Yielding Debt, Is Shocked At What It Finds:

BofA concludes:

For now, negative rates as a policy tool remain a “work in progress”, judging by the current inflation levels across Europe. But the rise in household savings rates amid so much central bank support is paradoxical to us, and mimics what we highlighted in the credit market earlier this year. Companies in Europe are deleveraging, not releveraging, and are buying back bonds not stock.

Read moreBank Of America Looks At Europe’s Record €2.6 Trillion In Negative-Yielding Debt, Is Shocked At What It Finds