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Truthout…
What Does WikiLeaks
Have on Bank of America?
by: Mary Bottari | Campaign for America's Future |
Report
Photo: petekraynak; Edited: Jared Rodriguez / t r u t h o u t)
Jan. 13, 2011 - 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 (BofA's CEO).
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 $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.
Countrywide Headaches
In 2008, BofA acquired Countrywide, one of the most aggressive and
fraudulent lenders during the housing bubble. The result has been a
trainwreck of liability and lawsuits for the megabank that now has over
1.3 million customers in foreclosure. To settle the lawsuits with
Illinois, California and eight other states over predatory lending,
BofA came up with an $8.4 billion loan relief plan for those holding
Countrywide mortgages...
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