PRESS RELEASE

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Bank of America, Citibank
Desperate for Funds

June 1, 2011 (EIRNS)—In discussions with economists in the environment of the Federal Reserve May 27, EIR found a good deal of openness about what Lyndon LaRouche had to say on the implications of the DSK affair. The reality is, they are faced with a desperate, impossible situation.

Topping the agenda, they said, are the looming crises of Bank of America and Citigroup, which are in desperate need of funds—somewhere between $50 and $75 billion more in "capitalization," i.e., bailout money, before the end of the fiscal year. Bank of America is apparently trying to unwind its mortgage-backed securities positions, but is finding it impossible, given the continuing collapse of the housing markets, and the (criminal) investigations underway. If the California investigation goes forward, one of the economists said, Bank of America could have huge problems.