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d_e_solomon · 4580 days ago · link · · parent · post: BofA shifts all its CDO losses onto an FDIC (taxpayer) insured subsidiary
I'm not saying that they're high quality, I'm only saying I don't have enough evidence to determine the quality.
1) The only reason I could see for the high quality derivatives to be moved is if the moves are made on behalf of a particular party - internal or external - that would prefer them in a more credit worthy entity. Some groups have a requirements around the credit rating of the holder which could be the reasonable. 2) SEC would have the jurisdiction I assume. Whether their opinion can be trusted is another matter. 3) If I personally were evaluating the assets, then I would add the risk of EU sovereign debt crisis effecting the valuation. I'm not very good at valuation though :) 4+5) That's what I'm curious about - it's not information that would be available to the public. So I'm guessing he has inside information.