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Small Business, Community and Faith Groups Protest Fed’s Decision to Allow Bank of America to Transfer Risky Assets to FDIC-insured Bank


Washington, DC –(ENEWSPF)–October 24, 2011.  The New Bottom Line – a coalition of small business, community and faith organizations – wrote President Obama, Fed Chair Bernanke, Treasury Secretary Geithner and FDIC Chair  Gruenberg protesting a secretive decision to allow Bank of America’s holding company to transfer risky derivative assets from Merrill Lynch to its FDIC-insured bank. 

Read the Letter: http://www.piconetwork.org/admin/documents/files/New-Bottom-Line-letter-on-BofA-exemption-to-President-Obama.pdf

The decision by the Federal Reserve once again allows a tottering financial institution to transfer risk onto American taxpayers.  The risk is that taxpayers will be left holding the bag.  The New Bottom Line called the move “a back-door bail-out” of Bank of America. 

The New Bottom Line calls on the Administration to revoke the exemption.  It also sets out four steps that must be taken to protect homeowners and communities in the event of a Bank of America meltdown. 

http://www.bloomberg.com/news/2011-10-18/bofa-said-to-split-regulators-over-moving-merrill-derivatives-to-bank-unit.html

The New Bottom Line is a new and growing movement fueled by a coalition of community organizations, congregations, labor unions, and individuals working together to challenge established big bank interests on behalf of struggling and middle-class communities. Together, we are working to restructure Wall Street to help American families build wealth, close the country’s growing income gap and advance a vision for how our economy can better serve the many rather than the few. Coalition members include PICO National Network, National People’s Action (NPA), Alliance for a Just Society, Alliance of Californians for Community Empowerment (ACCE), Industrial Areas Foundation of the Southeast (IAF-SE) and dozens of state and local organizations from around the country.

Source: www.newbottomline.com


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