Bank of America steels itself for exposure of Wikileaks data

Sunday, December 9th, 2012 By

A nonplussed preacher walks away from a Bank of America ATM.

If the dirt Wikileaks has on Bank of America is released, prayers won't help a bit. (Photo Credit: CC BY-SA/Jonathan McIntosh/Wikipedia)

Wikileaks founder Julian Assange recently told British New Statesman magazine that if he is imprisoned in Guantanamo or killed – or if a serious attempt is made to shut down Wikileaks – a digital “insurance policy” that comprises 1.5 gigabytes of encrypted, incriminating data on Rupert Murdoch, News Corp. and two major financial institutions will be unlocked for the world to see. Bank of America, which has been confirmed as one of the two banks in question, is currently in full damage control planning mode, reports PRWatch. It is believed that Wikileaks plans to expose B of A’s reportedly unethical conduct relating to toxic mortgages, illegal foreclosures and the use of bailout money for employee bonuses.

Assange may prove B of A execs knew they peddled toxic mortgages

Private investors and large-scale lenders like Fannie Mae and Freddie Mac are currently suing Bank of America in order to force the bank to buy back billions of dollars in toxic mortgage-backed securities. While Bank of America did stop issuing its own subprime mortgage loans in 2001, PRWatch indicates that the bank still underwrote $239 million in securities back by subprime loans as late as Sept. 2009.

It is suspected that in the encrypted insurance file, Julian Assange and thousands of other individuals who have a copy of the file (minus the decryption key) are holding copies of e-mails that prove Bank of America executives knew they were passing off toxic mortgages to investors. If this is true, Bank of America will likely need much more than the $4.4 billion currently set aside to deal with its slate of toxic mortgage lawsuits.

Bank of America’s alleged illegal foreclosures and bonuses

Illegal foreclosures – particularly of the wrong homes – have been another thorn in Bank of America’s side lately, although the bank has attempted to shift blame to the contractors it uses to perform the home seizures. If Assange can prove that Bank of America signed off on thousands of foreclosure documents without proper review, he will prove that Bank of America broke the law.

Add to this the list of claims Bank of America still faces after the Countrywide subprime debacle, and the corporate bonuses taken from bailout money and it appears Bank of America could be in serious trouble.

Sources

New Statesman

PRWatch

‘An ecosystem of corruption’

Previous Article

« Credit Repair Scams are on the Rise

Credit repair services started out with an honorable mission: to help people get out of debt and live the American Dream... If you need credit repair help, make sure you know who you are working with.
Next Article

Unemployment Checks Replacing Payday Cash for Millions »

Millions of Americans are relying on unemployment checks as their payday cash and still struggling to get back in the workforce. READ MORE...

Leave a Reply

Other recent posts by Steve Tarlow

Paying kids for grades | Capitalism in action

Should parents pay kids for getting good grades? If accompanied by lessons on the value of money, it can help produce a shrewd capitalist.
A young boy is filled with boundless happiness because someone has given him a $20 bill.

Tax free weekend NC 2010 helps families in need

Tax free weekend NC 2010 is a great time for North Carolina families in need to shop for back-to-school supplies for the kids. READ ON…
Close-up shot of crayons stacked into a tower, Lincoln Log-style.

JP Morgan Chase introduces $5 ATM transaction fees

JP Morgan Chase is leading the charge to raise non-customer ATM fees. The bank has introduced a whopping $5 non-customer fee.
A JP Morgan Chase high-rise office building