Adam Levitin Tells Congress: Citigroup, Bank Of America, JPMorgan & Wells Fargo Are All INSOLVENT
Update: Bernanke doesn’t see a problem with insolvency
More below – Ratigan, Black, Paulson and leverage.
Video – Georgetown Law Professor Adam Levitin
Start watching at 1:35, though the bomb from Levitin comes near the end…
■”If they started writing off their second-lien mortgages, they would have no capital left. They would be insolvent.”
He mentions Citigroup (nyse:C), JP Morgan (nyse:jpm), Bank of America (nyse:BAC), and Wells Fargo (nyse:wfc) by name.
Though it’s nice to hear the truth leak out in front of a small Congressional committee, this is nothing new to Daily Bail readers. It’s not even close, really. The 4 largest banks are insolvent many times over. Their puny and massively over-leveraged capital bases would not just be wiped out, they would be turned into negative multiples of the original equity.
Then take the next step and understand that these same criminally fraudulent and insolvent institutions, are paying their executives $144 billion in bonuses this year, based on false accounting that was endorsed by Congress and jammed down the throats of FASB in June of 2009.