If it wasn’t for the sheer magnitude of the idiocy associated with what happens behind the scenes at most major banks one would just laugh. However, one can’t help but look at just the latest story to grace the headlines referencing Bank Of America™ and its now uncovered “oopsy” accounting and wonder should you laugh or be scared.
Suddenly it’s been revealed that all the “extra” money they had to bolster their balance sheets which allowed them to offer dividends, buy backs, et al actually wasn’t there. So much so that the Federal Reserve (supposedly the overseers that are responsible that such things don’t/can’t happen) has now rescinded the “all clear go ahead and pay out” to “Holy crap what?” (more…)