Operation LeakS accuses Bank of America of Mortgage Fraud

I hate to publicize info before it has really been vetted, but you'll be hearing about it elsewhere. So, best to refer our readers to a reasonable analysis of the recent Operation LeakS release of Bank of America e-mails related to the mortgage meltdown.

The exchange centers on requests by Balboa employees to have document tracking numbers purged from Balboa systems so that they no longer correlate to specific loans.

At one point in the emails, a Balboa employee states that the request to purge information is an 'unusual' one and will require 'upper management approval' before they can move forward...

One of the leaked emails claims that Balboa was knowing hiding foreclosure information from federal auditors.

If the accusation is true - that a Bank of America manager requested loan information be destroyed and hidden from auditors, then this is explosive. But it's just as likely we're only hearing one side of the story.

Citigroup & Bank of America fall further, get bailed out further

Working in the banking field has been tough this week as bank stocks across the market have been hammered. Why? Primarily because of announcements out of Citigroup and Bank of America which underline how much risk they have gobbled up, and how poorly they have managed as they have acquired small bank after small bank. Citigroup has actually been split this week into two different companies - albeit still under the Citigroup umbrella of management - one of which is likely to be allowed to fail in the next six months. Both banks have also accepted large new sums of capital from the government, making the U.S. government primary shareholders in these companies.

Have we crossed the Rubicon here, on the weekend between presidencies, at a time when Bush is no longer president but Obama has not yet taken on the mantle? This looks and smells just like complete nationalization of the banking system, something our Founding Fathers (and Mothers) were absolutely against and which has lead Europe into a malaise which has kept unemployment high and growth low for decades. The timing of this move is suspicious as it gives all politicians the excuse of not having been in charge when it happened, thus there being no accountability for such a fundamental change to our economic system.

As a bank employee, I am happy to see it as a potential bringer of stability to an unstable market. As an American, I am sad to see it, as it may be the beginning of an era of extreme governmental intrusion and limitation of personal liberties.