Yes. BofA has written IOUs to buyers unknown to me saying they will deliver 800M ounces of silver to them at some point in the future, where this point is determined by the buyers.
Given their lack of capability to produce this good, they have taken about $18 billion risk assuming they are able to manipulate the market with more strength than the buyers.
I cannot imagine how this level of risk is acceptable… without a massive taxpayer footed fallback plan
In Q3 2021 they had profits of about 8 billion... This is not a big deal and it's unlikely they'd lose everything. Certainly poses little to no systemic risk.
Given their lack of capability to produce this good, they have taken about $18 billion risk assuming they are able to manipulate the market with more strength than the buyers.
I cannot imagine how this level of risk is acceptable… without a massive taxpayer footed fallback plan