Buoyed by one-time gains from accounting changes and the sale of assets, Bank of America reported a $6.23 billion profit for the third-quarter
What were those accounting changes and sale of assets? It appears Bank of America moved Merrill Lynch derivatives to a FDIC insured subsidiary. Bloomberg:
Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation.
The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.
European policy makers unveiled an unprecedented loan package worth almost $1 trillion and a program of bond purchases as they spearheaded a global drive to stop a sovereign-debt crisis that threatened to shatter confidence in the euro.
Jolted into action by last week’s slide in the currency and soaring bond yields in Portugal and Spain, the 16 euro nations agreed to offer financial assistance worth as much as 750 billion euros ($962 billion) to countries under attack from speculators. The European Central Bank will counter “severe tensions” in “certain” markets by purchasing government and private debt.
So, instead of bailing out banks, this sounds similar to TARP except it is to bail out European countries.
Meanwhile, the Federal Reserve is opening up currency swaps to loan to foreign central banks. From their press release:
Press Release
Federal Reserve Press Release
Release Date: May 9, 2010
For release at 9:15 p.m. EDT
By now we are all familiar with the fact that Iceland's government has collapsed amidst a financial failure and popular protests.
What isn't as well-known is that this appears to be merely the start of a tsunami of street protests, general strikes, and riots that will rock Europe for months (and maybe years) to come.
The problem is especially troublesome in eastern Europe, where it is likely that governments will topple before the economic crisis is over.
Bank of America just made 
Today French President Sarkozy and German Chancellor Merkel made a huge call to action for the 
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