....The Next Big Bailout has already started
from Economic Sense

People who leave their money with BoA already know (or should) that they're taking a fair-sized risk. In late September, Moody's dropped the credit rating of the bank's long-term holding company two levels, from A2 to Baa1, and cut its retail bank rating from A2 to Aa3. There are over $1 trillion in deposits still in an institution sitting on a status that is barely north of junk.

"Bank of America is the only US lender that lacks a rating of A3 or higher among the five firms listed by the Office of the Comptroller of the Currency as having the biggest derivatives books," Bloomberg wrote in an October 18 story.

Behind the word "biggest" lies a reality that is truly mind boggling. Bank of America's holding company - the parent of both the retail bank and the Merrill Lynch securities unit - held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. That's trillion, with a T.

And here's the really cool part. Can you guess who's on the hook if that gargantuan derivatives book blows up in BoA's face?

We are.....