What Does Wikileaks have on Bank of America?

[marmar]

from BanksterUSA:



What Does Wikileaks have on Bank of America?
Submitted by Mary Bottari on January 14, 2011 - 11:17


WikiLeaks founder Julian Assange is promising to unleash a cache of secret documents from the hard drive of a U.S. megabank executive. In 2009, he told Computer World that the bank was Bank of America (BofA). In 2010 he told Forbes that the information was significant enough to "take down a bank or two," but that he needed time to lay out the information in a more user-friendly format.

Recent new reports suggest that BofA is now moving into high gear on damage control, creating a "war room" and buying up hundreds of derogatory Internet domain names including BankofAmericaSucks.com and BrianMoynihanblows.com (referring to BofA's Chief Executive Officer).

Before the big banks start calling for Assange’s internment at Guantanamo, the question worth considering is what does Wikileaks have on America’s largest bank?

Legal Liability for Toxic Mortgages

BofA is already under the gun, defending itself from multiple lawsuits from private investors as well as Fannie and Freddie demanding that the bank buy back billions worth of toxic mortgages-backed securities. The firm stopped issuing subprime mortgages in 2001, but it kept underwriting subprime mortgage-backed securities for many years. In September 2009, for example, BofA underwrote $239 million worth of securities backed by subprime loans. BofA has reserved a mere $4.4 billion for these "put back" lawsuits. If Assange has emails showing that top executives at BofA knew they were peddling toxic dreck to investors, it would rock the firm and give tremendous ammunition to the army of lawyers already knocking on BofA’s door.

Reckless and Illegal Foreclosures

BofA is at the heart of the robo-signing scandal and has wrongfully foreclosed on countless American families. One poor woman returned to a vacation home to find it locked, all her possessions gone -- including the ashes of her late husband. How could such a mistake be made? A BofA employee deposed in February 2010 said that she signed as many as 8,000 foreclosure documents a month without reviewing them, in violation of the law. Mounting questions about the fraudulent and illegal foreclosure practices at the big banks and mortgage service companies prompted BofA to temporarily halt foreclosures nationwide in October, 2010. If Wikileaks can document that top BofA officials have a callous disregard for legal processes and constitutionally protected property rights, BofA’s mounting legal liability may not be sustainable. .............(more)

The complete piece is at: http://www.banksterusa.org/content/what-does-wikileaks-have-bank-america-0

[rfranklin]

1. Just release it already...

what's the holdup?

[former9thward]

2. Not much, apparently. The stock price has been going straight up.

[WinkyDink]

3. Like venality is a negative correlation?

[former9thward]

4. Not sure what your point is but if the market thought

Wikileaks had anything that "would bring down a bank" they would not be pushing the price up.