No matter how outraged you are, it's impossible to keep up (h/t Lily Tomlin). In last week's installment of "Let's Hope No One's Paying Attention," the Bank of America moved uninsured Merrill derivatives to its commercial bank's federally insured ledgers. In other words, if Bank of America fails, the FDIC must clean up its mess. And apparently the FDIC isn't any too happy about it. But the Fed is reportedly all in favor of the move. Matt Taibbi explains: "Essentially, an irresponsible debtor, B of A, is keeping a loan shark from breaking his legs by getting his rich parents to co-sign his loan. The parents in this metaphor would be the FDIC." Actually, the "parents" would be both the FDIC (Mom) and the Federal Reserve (Dad). But Dad is egging the miscreant on instead of calling him to account.
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