First off, Chaz knows a guy who saw the documents in question. Unfortunately, this character had no idea what anything in there meant.

…one source who claims to have read some of the documents held by WikiLeaks confirms that they do in fact involve Bank of America. Adding to the mystery, however, this source says that they found it difficult to determine just what they mean. Given that Wall Street’s straightforward business—buying and selling, borrowing and lending—now requires a math Ph.D. to understand, this shouldn’t be too shocking.

And so it falls to Gaspo, naturally, to come up with something.

Here’s the problem for Bank of America: Its mortgage origination business, like the rest of that industry, probably witnessed rampant fraud during the bubble years. Banks made loans to borrowers without proper documentation of employment and other pertinent information. Since Countrywide focused on the low end of the market, the so-called subprime market where people who borrowed money have lousy credit histories, it’s only logical to assume many of those loans were at least risky, if not made fraudulently.

This is just an educated guess: I have no evidence whether Countrywide’s lending practices were so lax (and some would say corrupt) that loans were made to people who either lied about their finances or had mortgage brokers lie about that information. But it’s the same educated guess made by many sophisticated traders last week when the WikiLeaks issue emerged, and BofA’s share began to tank.


WikiLeaks’ Wall Street Bombshell
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Comments (20)

  1. Posted by Guest | December 6, 2010 at 4:24 PM

    “Educated Guess” + “Charles Gasparino” = Oxymoron

  2. Posted by Unitalianovero | December 6, 2010 at 4:37 PM

    This sort of education you can only get out on the streets and alleys of Rego Park and in the musky back rooms of The Bond Buyer HQs.

  3. Posted by Texashedge | December 6, 2010 at 4:37 PM

    I figured it out–turns out BofA has really just been North Carolina National Bank the whole time.

  4. Posted by Rho2Gamma | December 6, 2010 at 4:47 PM

    So according to Gasbagrino, one needs a PhD in math to understand 1 + 1 = 3 (marked to model)

  5. Posted by FrankStallone | December 6, 2010 at 4:52 PM

    In other news, Joe Kernan still won’t shower in the CNBC locker rooms…

  6. Posted by Johnnyrocks36 | December 6, 2010 at 5:03 PM

    Bank of Amerrillwide, too bad Merrill Lynch portion of this shitty company is the lone division making any money.. When BOA goes bust, Merrill Lynch can be spun off and a stand alone company again

  7. Posted by Source | December 6, 2010 at 5:18 PM

    Charlie knows just how lax BoA is: They lent him seed money for his sleeveless jacket company against future earnings from “The Sellout.”

  8. Posted by Anonymous | December 6, 2010 at 5:25 PM

    ….due to Carl Quintanilla lurking behind the stalls.

  9. Posted by Wonder | December 6, 2010 at 5:26 PM

    WHAT IS CNBC?

  10. Posted by Orville | December 6, 2010 at 5:28 PM

    YOU….Mr. Guesst are putting forth something half right……YOu are a certified MORON.

  11. Posted by Pfluger the Barbarian | December 6, 2010 at 5:29 PM

    The Jabroni doesn’t have a PhD, and he therefore admits that “the business of Wall Street” is too complex for him to understand. To most Jabroni observers, this has been painfully obvious for years. Finally, the Jabroni admits his shortcomings…

  12. Posted by CurrencyTrader | December 6, 2010 at 5:39 PM

    Cage Fight: Gasparino takes on a tag team of Cramer and Niel Cavuto – winner receives a meatball sub and a bucket of muscle milk. 4:1 odds

  13. Posted by recko | December 6, 2010 at 5:54 PM

    Wait til Charlie finds out the ufo and bank Wikileaks angles are actually one story.
    BofA was loaning $$$ to aliens…No, I mean REAL aliens.

    Dat’s whut I call a liar loan.

  14. Posted by Anonymous | December 6, 2010 at 6:02 PM

    To: [email protected]

    From: [redacted underling]@foxbn.com

    Re: BofA Wikileaks

    Chaz,

    Spent the weekend going through the document looking for the “juice” just like you told me. Couldn’t find anything conclusive. My best guess is that it has to do with toxic mortgages. Probably Countrywide, yeah, let’s go with that. Mozillo’s baby has been ready to blow since BofA made it’s first investment. I heard BofA ring-fenced the purchase, but your readers don’t know what that means, so don’t bother.

    Happy Monday!

    [redacted underling]

  15. Posted by LargeFarva | December 6, 2010 at 6:09 PM

    Whoa, whoa, buddy….go easy on him….that was a little rough, don’t ya think?

  16. Posted by Guest | December 6, 2010 at 7:32 PM
  17. Posted by Rho2Gamma | December 6, 2010 at 8:24 PM

    Comedic News with Boobs Channel

  18. Posted by HowardC | December 7, 2010 at 2:47 AM

    Wikileaks-BofA=Brille’s escort list

  19. Posted by Anonymous | December 6, 2010 at 5:25 PM

    The source was thinking too hard– he thought the expenditure lines marked “Boone’s” and “Tanning” were code for secret projects.

  20. Posted by Antonio Iruegas | September 19, 2012 at 5:01 PM

    Hi, thanks for the information on how to create a facebook email account. I sent the invite request, still awaiting for approval.