Trouble for BofA; Cash for Gaza?

by Chris Sturr | January 05, 2011

(1) More bad news for Bank of America: Earlier this week Bloomberg and other outlets reported on the settlement that has BofA paying Fannie/Freddie $2.8 billion, “after the U.S.-owned firms demanded the company buy back mortgages they said were based on faulty data.”  This kind of news, along with WikiLeaks’ claim (which we’ve reported here a couple of times) that they have some dirt on the gigabank, is what got BanksterUSA head Mary Bottari to include “the Demise of Bank of America” among her predictions for 2011:

The Demise of Bank of America

Wikileaks founder Julian Assange is promising to unleash a cache of secret documents from the troubled Bank of America (BofA). BofA is already under the gun, defending itself from multiple lawsuits demanding that the bank buy back billions worth of toxic mortgages it peddled to investors. The firm is also at the heart of robo-signing scandal, having wrongfully kicked many American families to the curb. If Assange has emails showing that Countrywide or BofA knew they were recklessly abandoning underwriting standards and/or peddling toxic dreck to investors, the damage to the firm could be irreparable.

Read all of Mary’s predictions, Full Catastrophe Banking in 2011.

(2) More Wikileaks mischief–Israel aimed to keep Gaza on the economic brink: How’s your Norwegian?  ‘Cause the latest publication to spill U.S. diplomatic beans, courtesy of Wikileaks’ trove of diplo-cables, is Norway’s Aftenposten, which just published a cable, entitled CASHLESS IN GAZA?, that reveals that Israel aimed to keep Gaza’s economy “on the brink of collapse”.  Check out analysis and commentary at the NYT’s Lede blog.

That’s it for today–watch this space for live blogging (if I can figure out how to do it from my Droid!) from the Allied Social Sciences Association meetings in Denver.  I hope to be able to announce the American Economics Association’s adoption of a code of ethics–but don’t hold your breath.

–Chris Sturr

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