This morning, "Anonymous" released the first part of a series of leaks alleging fraud in Bank of America's mortgage practices:

 

http://www.csmonitor.com/Business/2011/0314/Bank-of-America-accused-by-anonymous-website-of-hiding-data

 

One of the leaked emails claims that Balboa was knowing hiding foreclosure information from federal auditors. This would appear to relate to federal investigations into accusations from consumer groups that Bank of America and other mortgage servicers have been foreclosing homes without the proper documentation.

 

http://dealbook.nytimes.com/2011/03/14/hackers-say-bofa-unit-tried-to-hide-mortgage-error/?src=mv

 

Apparently this is the first part of the leaks, although the leak website is currently offline after being overloaded with traffic. The emails are light on evidence and detail, so there's not much to conclude so far.

 

This looks like it'll be an interesting week in the news.

It doesn't surprise me that there's a lot of fraud going on in the banking world.

 

If the whole business model is based on a pyramid scheme of ever increasing debt, and if you allow the institutions to create money with money, then it's just a matter of time before it spirals out of control. And when things become more difficult, as it has been in the last couple of years, fraud and corruption increase.

 

I personally think that the gates have barely opened. The large majority of the dirt isn't out on the street yet.

It doesn't surprise me that there's a lot of fraud going on in the banking world.

But it should anger us, at the very least. I think a lot of corruption goes unpunished because we expect a certain amount of it as almost natural. Politicians can lie, bankers can steal, and big business can pollute. They all seem to count on our unwillingness to press for accountability.

 

The one that kills me is how, in the US, we can't thoroughly investigate a president after he leaves office anymore, because it would disparage the office, wouldn't be good for the country, would make us look bad, etc. Convenientness, some would say.

 

I personally think that the gates have barely opened. The large majority of the dirt isn't out on the street yet.

It's being stored under the rug where it was swept in the first place. But I agree, there's a lot more to be learned. I'll bet BoA is interviewing for "patsies" as we speak.

 

If the whole business model is based on a pyramid scheme of ever increasing debt, and if you allow the institutions to create money with money, then it's just a matter of time before it spirals out of control.

 

Same can be said of the Fed, except that they don't even need money to create more of it.