Bank of America has not been specifically named as a target of Wikileaks, at least not directly; everything out there is more on the order of speculation. And yet they either know something particular about that speculation or they’re just proceeding with an abundance of caution. They’ve begun a document review led by a “chief risk officer” (I didn’t know BofA actually managed their risk; must be a new hire).
Since then, a team of 15 to 20 top Bank of America officials, led by the chief risk officer, Bruce R. Thompson, has been overseeing a broad internal investigation — scouring thousands of documents in the event that they become public, reviewing every case where a computer has gone missing and hunting for any sign that its systems might have been compromised.
In addition to the internal team drawn from departments like finance, technology, legal and communications, the bank has brought in Booz Allen Hamilton, the consulting firm, to help manage the review. It has also sought advice from several top law firms about legal problems that could arise from a disclosure, including the bank’s potential liability if private information was disclosed about clients.
Booz Allen Hamilton is a pretty heavy hitter, so this is a serious review.
I’m not sure what BofA can do to minimize any damage in the event that material gets released; they’d probably do better to join the chorus of those marginalizing Wikileaks and destroy the messenger. I’m sure they’re readying alternate explanations for whatever their most horrific documents say. In addition, the bank has bought up a bunch of negative-sounding domain names. But that’s not going to really stand up as effective crisis management in the face of the evidence. There’s a large cottage industry that would relish the opportunity to pore through BofA documents and take the bank down. This could prove far more damaging than the State Department cables, which have actually been substantive, but which have been drowned out by the focus on Wikileaks and Julian Assange.
Interestingly, BofA speculates that Assange has documents related to the Merrill Lynch or Countrywide mergers:
With the data trail cold, one working theory both inside and outside the bank is that internal documents in Mr. Assange’s possession, if any, probably came from the mountains of material turned over to the Securities and Exchange Commission, Congressional investigators and the New York attorney general’s office during separate investigations in 2009 and 2010 into the bank’s acquisition of Merrill Lynch.
As it happens, Mr. Assange’s first mention of the Bank of America hard drive, in October 2009, coincided with hearings by the House Committee on Oversight and Government Reform into the Merrill merger, and with wide-ranging requests for information by the committee [...]
In addition to the Merrill documents, the team is reviewing material on Bank of America’s disastrous acquisition in 2008 of Countrywide Financial, the subprime mortgage specialist, the officials said. The criticism of Bank of America’s foreclosure procedures centers mostly on loans it acquired in the Countrywide deal, and one possibility is that the documents could show unscrupulous or fraudulent lending practices by Countrywide.
Now that would not necessarily be anything new, but it could lead to more lawsuits over repurchases of mortgage-backed securities affiliated with Countrywide. There’s probably enough in the public domain already to facilitate that if a favorable court ruling ensues, however.




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Considering Hank Paulson was holding the shotgun for the BofA/Merrill merger, I presume BofA’s speculation that the Wikileak has to do with that merger is a way to get the USG involved in stopping Wiki’s leak. The USG might not be willing to act in BofA’s interests, but they’ll certainly act if their own secrecy is threatened.
Or maybe the Bank of America could hire a consultant to suggest a new name for the company. Re-branding might be the best way to go. Look at Ally Bank (nobody trusted GMAC, but look, now we’re your ally!)
Interestingly, the market has been kind to BoA [BAC]. Over the past 30 days it has gone from $11.86 to $14.18 per share. Moreover, it is being recommended by a number of well regarded analysts as a strong buy for 2011.
Flim-flam’ll get ya fortune if ya shill to the right marks/rubes – eh?
When are the cables supposed to be released?
really, how can you POSSIBLY trust someone who had consensual sex without a condom…I mean really
So if Booz and associates witness documents that indicate fraud or criminal activity are they not then in complicity with BOA if they do not report to authorities or is there some client privilege to hide behind.
Zing! David turns, David shoots, David scores!
Very funny comment about BofA risk management new hire. Probably just in from Citi.
Yes, this could be much bigger than State Dept. gossip. Also, they would probably rather blame the problem on government subpoenas than an employee or bad management.
Hrmph! Actually he had one on but it broke in the middle of a thrust. That little bit of info did not come from a fly on the vaginal wall; it was though, straight from the mouths of babes.
i wonder what the domain names were. could be some hints there as to the nature of their wrongdoing, er, the wrongdoing they’re scared of being found out on.
“They’ve begun a document review led by a “chief risk officer” (I didn’t know BofA actually managed their risk; must be a new hire).”
The chief risk officer is assigned the task of assessing and limiting the chances that these criminal fucks go to jail not, of course, to assess the risk associated with the actual business dealings, which we all know are of no consequence since that risk belongs to the American people.
Hehe that ought to be a sure sign that it is close to insolvency without another theft from the American people. ;-)
“There’s a large cottage industry that would relish the opportunity to pore through BofA documents and take the bank down.”
Wait, FDL is a cottage industry? Or lots of folks would like to tank the bank?
ROFLMAO.
AND THE KILLIN’ GOEZ ON AND ON AND…
Citizen David Dayen:
Thank you for the post, Brother David, but the key to this entire Wikileaks bruhaha is whether or not Wikileaks can turn the public conversation from the legality of the leaks to the substance of the information. It seems to me that the information on the banksters and the looting of the treasury in bailing out criminal activity is much more important than what Wiki exposed in the earlier rounds of document dumps on the State Department and the oil wars. In fact, the links between the financial cartel and the oil wars is the nuclear IED that is fixin to blow the lid off of the ponzi scheme that is our current national economy. I think Assange made a strategic mistake in releasing the State Department stuff before the banking stuff.
What do you think Assange and his band of merry folks really have on the oiligarchy, is there enough to capture the attention of the stupid American public?
KEEP THE FAITH AND PASS THE AMMUNITION, IT’S ALL ABOUT THE WARS STUPID!!
BofA couldn’t do better, for that job, than Booz Allen, which is a magicians. Smart as Progresives are, and as sane as we are, compared to the ubiquitous, iniquitous minions of the right, we have never grasped the importance of the Frame Wars, especially when communicating outside our own circles.
It would be very interesting if it were not Bank of America that the documents are from but another bank, like Citibank or Goldman Sachs, equally up to its ears in the housing meltdown.
Booz Allen Hamilton will have been hired as “insurance” in defending shareholder lawsuits. They will claim it takes these claims by “disgruntled outsiders” seriously, however flawed their claims may be. A pity the bank’s management doesn’t really take protecting shareholder value as seriously as it does defending its turf, perquisites and bonuses. The hire also suggests, as you point out, that BofA knows that there’s dirt under its carpet, should anyone care to take the risk of telling WikiLeaks about it.
So far as we know, WikiLeaks, no more than the NYT, doesn’t conspire with anyone to break the law; it publishes to the world credible evidence of what others claim their employers or government are doing. Which would be reason enough for those employers or governments to declare a witch hunt in an effort to discredit that evidence by discrediting those who publish it, hoping thereby also to discredit and intimidate whistleblowers who dare to put the public interest ahead of their employer’s or a government hoping to hide its embarrassments or lawbreaking.
This is good for wikileaks, it strenghtens thier position to have thousands of lawyers who are litigating against bank of America, or considering doing so, hoping to find some ammo. I see that as overall a good thing.
…There’s probably enough in the public domain already to facilitate that if a favorable court ruling ensues, however…
There is a lot out there in the public domain…
Tom Burghardt really did his research in another instance…
U.S. Embassy Turned a Blind Eye as Suspected CIA Banker Allen Stanford Bilked Investors, Secret Cables Reveal…
You also want to make a joke about him having sex with someone who is asleep?
Is that the “progressive” position now? As long as the woman is not crying for help the man is allowed to do whatever he wants to her?
Hang on to that strawman there; it’s two different issues, and the alleged rape charge is just that; an allegation and not adjudicated.
So for one, innocent until proven guilty is the correct way to look at the alleged rape charge and –
For two, it doesn’t have anything to do with BofA’s wrongdoing exposed.
Lastly, those are transpartisan issues, nothing to do with “progressive” or not.
In her own bed…? After a first ’round’, of which she later brags about her ‘conquest’ on her fb page…? Btw, iirc it was a ‘busted condom’…! *gah*
Why are we not pushing the 14th Amendment and its making illegal any “debt limit” law because such a law would permit the violation of the Constitution’s guarantee that the interest on the Debt will be paid.
Indeed where does the Social Security annual surplus go if the Trust can not buy new government bonds.
Why focus on they are crazy when They are traitors to the Constitution works much better – and is easily proved?
Bank of America should have been already taken down.
If it.s worried, it’s because it’s got so many skelitons its’ worried about being dug up it can’t hide all the graves.
If it was a totally above board Bank. It would be saying bring it on, because we are as clean as newly fallen snow.
Hiring Lawyers is more a show of guilt then trying to protect themselves.
“I’m not sure what BofA can do to minimize any damage in the event that material gets released”
I disagree. The response you describe suggests that there are so many nasty secrets that need hiding at BofA that management is not sure what might be about to break. Moreover, the company response suggests that it fears some revelations that are very big indeed–probably well beyond anything we have heard so far and perhaps not even related to mortgages.
First, it looks to me like the company’s risk management actions (other than the domain names) are very focused: BofA is now trying to find out what/hiow much might be compromised and how/by who. They are “scouring thousands of documents in the event that they become public, reviewing every case where a computer has gone missing and hunting for any sign that its systems might have been compromised.” Why? Because if a specific document goes public that was held by a specific employee, stored on a missing laptop or bag of backup tapes, or kept on a server that logged an intrusion, they can do two very important things: they can quantify the extent of their exposure and they can identify and seal off the source of the leak. This is, in fact, pretty much what intellegence agencies are said to do following a defection or the discovery of a mole.
The choice of Booz Allen Hamilton is thus interesting. BAH isn’t just a consulting firm. It is headquartered in Maclean VA (home of the CIA). Wikipedia tells us, “Booz Allen’s core business is contractual work completed on behalf of the US federal government, foremost on defense and homeland security matters, with limited engagements of foreign governments specific to U.S. military assistance programs”. That alone should cause us to take note. But there is more. At one time, they did general business management consulting, but, “as of July 31, 2008, what was formerly Booz Allen Hamilton’s parent company (which used the Booz Allen name itself) divided into two wholly separate entities, based on a vote by Booz Allen’s senior vice presidents and vice presidents. As a result, the Booz Allen Hamilton moniker would be retained by the half focusing on U.S. governmental matters, with the spinoff Booz & Company taking sole control of its commercial strategy and international portfolio. As a consequence, Booz Allen Hamilton was majority owned by private equity firm The Carlyle Group”.
The interesting point is thus that BofA has apparently engaged the “the half focusing on U.S. governmental matters”–homeland security/defence/intelligence/counterintelligence–for its damage control. It has hired what is essentially a white collar cousin of Blackwater’s, like Titan and CACI.
Remember what the Carlyle Group is, as well: a private equity firm with ties to the defense, oil, and global fincance sectors. To see how much that description encompasses, just glance at a list of current and former employees: David M. Moffett (CEO of Freddie Mac), Karl Otto Pöhl (President of the Bundesbank), Olivier Sarkozy (brother of the President of France), G. Allen Andreas (Chairman of the Archer Daniels Midland), Joaquin Avila (former managing director at Lehman Brothers), James Baker III, George H. W. Bush, George W. Bush, Frank C. Carlucci (former United States Secretary of Defense), Arthur Levitt (Chairman of the SEC), Mack McLarty (White House Chief of Staff to President Bill Clinton), John Major (ex British Prime Minister), Thaksin Shinawatra (ex Thai Prime Minister), and Norman Pearlstine (ex editor-in-chief of Time).
The bottom line is that the possibility that WikiLeaks might have something on BofA is being treated as an all out assault on supranational, corporate oligarchy and the US Security State. To us and perhaps to Assange, it may look like WikiLeaks has some dirt on the banking scandals. But to Them, whatever WikiLeaks has or may have is being treated like a nuke in the hands of a NYC cab driver in a turban. We’ve seen a crack in the wall.