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Thread: Something weird happening in my accounts

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    Default Something weird happening in my accounts

    I've noticed this before, but wasn't paying much attention. A small amount of $ has been taken out of my Roth IRA for a while, then it was deposited back. NOT BY ME!
    I also have access to my sister's Bank of America savings account since she is just visiting the US and doesn't always know how to handle her funds. She's had $300 in her savings for a while, and I was wondering why she wasn't receiving any interest on her money. Well, yesterday Bank of MAerica announced it's profit is 32% down, and all of a sudden I see 22 cents deposited into my sister's account. I wonder if people start withdrawing their funds from the banks and the banks are afraid we could ask where our money was/is? Weird.

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    Default Re: Something weird happening in my accounts

    I would have bet that the deductions from your Roth IRA were 'service charges', but this can't be the case if the money was deposited back. More likely some agency was attempting to verify your account by conducting a small test transaction (perhaps the IRS ?)

    As to B of A, yup they have admitted to having taken billions of dollars worth of losses on derivative investments (mostly related to subprime loans), thus their quarterly profits announcement was sucko. Same is true of quite a few other banks. And no the banks have no obligation to tell you where your money is ... only that it is FDIC insured against loss of principal (by the US taxpayer, not by the bank). So technically speaking, if your sister's B of A demand deposit was invested in a mrzzanine tranch CDO by the bank, her money has already gone up in smoke !!!

    From a 'good ol fashioned' accounting standpoint, it's entirely possible that B of A is already technically bankrupt. However, in today's world of 'mark to whatever value you want to think up' derivatives, it's a practical impossibility to actually find out the true financial situation of any bank holding derivatives. However, you can be sure that B of A is hurting worst than most banks, since they were a big proponent of the Special Investments Conduit deal earlier in the week.

    (snip)"Now comes a FASB rule revision that supposedly provides more price transparency to investors. I read this article several times, and would be interested in how my reader’s interpret it? I have a cardinal rule about today’s climate, and it’s if highly intelligent people can’t understand it, there is a good chance it’s a ruse. At first blush I thought maybe the manila envelope to “regulators” wasn’t large enough. Then for me the Eureka moment came at the part about “third party value”. My Goodness sakes, who else could that “third party” be? Answer: the major Pig Men and their minions. And notice how once again the term “market participant” is being used to refer to the Politburo? The plan is to allow the foxes guarding the hen house to come up with their very own pricing scheme, and collect fees dispensing the lies. Looks like Aunt Millie is going to get snookered and “hedged” once again.

    Under the standard, companies will be required to measure fair value based on the exit price of an asset and a hypothetical third party’s (or market participant’s) value placed on that asset.
    "(snip)

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    Last edited by Melonie; 10-19-2007 at 01:09 PM.

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