Bye, Bye, Bank of America Pie…

Posted on March 14, 2011


It’s over for Bank of America. We are all about to hear the dying thud of “too big to fail” as it slumps to the ground.

Here’s what happened:

Bank of America lied to Federal regulators about its foreclosure practices. Its insurance offshoots committed widespread insurance fraud. Consumers were entered into a system that was designed to promote foreclosure of their homes while Bank of America was supposed to be entering consumers into HAMP agreements. Since any review of the numbers would reveal this fact to regulators, Bank of America faked their numbers.

This activity could not have happened without complicity and instruction from the top of the organization.

Another serious systemic weakness is the class of the Federal regulators. They all relate to the banks they are supposed to be regulating. They all went to the same schools and were the good little eggs who studied and did well on the SATs. Yes, that gives you intelligence. It also gives you conformity of thought and perspective. There is a bias towards the establishment and the dewy-eyed acceptance of the words of the bankers.

This really needs to stop. Get some variety of blood in there.