My good friend Nomi Prins has a great new piece out that I just caught on Zero Hedge, chronicling 10 reasons why depositors should pull out of Bank of America.
Obviously Goldman, Sachs has become the great symbol of investment banking corruption, and other companies like AIG and Countrywide have become poster children for problems with businesses like insurance and mortgage-lending. But when it comes to commercial banking, Bank of America is as bad as it gets.
The markets, of course, have lately come to agree, as B of A has lately been downgraded again to just above junk status. The only reason the bank is not rated even lower than that is that it is Too Big To Fail. The whole world knows that if Bank of America implodes – whether because of the vast number of fraud suits it faces for mortgage securitization practices, or because of the time bomb of toxic assets on its balance sheets – the U.S. government will probably step in to one degree or another and save it.