Can you say “regulatory capture”? Sure you can. The acquisition of Merrill Lynch was in 2009, Bank of America only caught this mistake last week, and you’re happy they are handling it swiftly? How about asking how it got through for 5 years? Bank of America has been structuring those inherited notes since 2009, and only now noticed a problem? Earth to Janet Yellen: this is NOT good news.
This disclosure doesn’t raise credibility issues; it confirms credibility problems.