Archive - Mar 13, 2011
"Operation LeakS" Releases Initial BofA Emails Indicating Premeditated Intent To Deceive Government And Auditors
Submitted by Tyler Durden on 03/13/2011 23:31 -0500From Operation LeakS' site, http://bankofamericasuck.com, here is the initial release of what appears to be a whistleblower's (former employee) disclosure that Brian Moynihan's firm is lying to the Federal government. The punchline is that this appears to be a concerted effort from the ground up to hide foreclosure data from auditors and the Fed in order to obtain select preferential treatment in a variety of housing related axes, in many instances to accelerate foreclosures. As the whistleblower summarizes: "Balboa Insurance/Countrywide knowingly hiding foreclosure information from federal auditors during the federal takeovers of IndyMac Federal (a subsidiary of OneWest) and Aurora Loan Services (a subsidiary of Lehman Bros Holdings), falsifying loan documentation in order to proceed with foreclosures by fixing letter cycles in the system, reporting incorrect volumes to all of their lenders and to the federal auditors to avoid fines for falling behind on Loan Modifications, purposefully and knowingly adjusting premiums for REO insurance for their corporate clients while denying forebearances for individual borrowers, etc, etc, etc. In addition, if anyone can get me a copy of the image of the hard drive that Jullian Assange reportedly has from the BofA executive, it will not take a dozen financial analysis to decipher it like I've read in the news. I could find all the dirt on that hard drive within a week." We'll see if Assange steps up. In the meantime we expect Brian Moynihan, or rather Ken Lewis who was in control back then, to pull a Dick Fuld and tell a Congressional hearing he had no idea any of this was happening, leading to the termination of some mid-level employee, notably the person who invalidated the following concerns: "I'm just a little concerned about the impact this has on the department and company. Why are we removing all record of this error?... There is always going to be the paper trail when one of these sent documents come back, this to me, seems to be a huge red flag for the auditors...This just doesn't seem right to me." That's ok - it will most certainly seem right to everyone in "law enforcement." In the meantime, note the date: November 2010. This is not a Ken Lewis transgression (as we previously assumed) - this is all Brian, all the way.
CalPERS Lowering its Investment Target?
Submitted by Leo Kolivakis on 03/13/2011 23:25 -0500The nation's largest public pension fund could make a small accounting change that would carry a large price tag for taxpayers when board members meet this week...
Stunning Video Of Reactor 3 Explosion
Submitted by Tyler Durden on 03/13/2011 22:04 -0500
Archive film.
Update: Make That 15 Trillion; BOJ Raises Liquidity Injection To JPY12 Trillion ($146 Billion)
Submitted by Tyler Durden on 03/13/2011 21:48 -0500The surreal black swan clusterflock continues its trek through the world: "The BOJ offered a combined 15 trillion yen ($183 billion) into the banking system on Monday in its first same-day market operation since the Greek debt crisis in May last year, to soothe market jitters in the wake of a devastating earthquake and tsunami that struck northeast Japan on Friday. The central bank's policy board will likely discuss whether the sharp fall in Tokyo stock prices and the potential damage from the quake to corporate profits warrant an immediate policy response, the sources said." And we have since learned that the extra 3 trillion will be use to buy government bonds. Hello QE, my old friend.
NHK Reports Hydrogen Explosion At Fukushima Reactor #3 As New Tsunami Is Heading For The Plant
Submitted by Tyler Durden on 03/13/2011 21:21 -0500
As a new 5 meter Tsunami is expected to hit Fukushima again, and residents are being advised to immediately get to higher ground, an explosion had been heard coming out of Reactor #3 at the power plant at 11:08 am local time. Supposedly this is a hydrogen explosion just like on Saturday, although the credibility of everyone involved at this point is zero. Dow Jones confirms that only the shell of the third reactor remains.
Follow the latest at NHK in what is becoming the most surreal news night in history.
OperationLeakS: "Ex-Bank Of America Employee Can Prove Mortgage Fraud"
Submitted by Tyler Durden on 03/13/2011 21:13 -0500An advance look at data to be released in under 2 hours from the previously discussed OperationLeakS indicates that tomorrow may be a very bad day from John Paulson, David Tepper and the rest of the "don't fight the fed" crowd.

Saudi Arabia Prepares To Enter Bahrain
Submitted by Tyler Durden on 03/13/2011 21:06 -0500And just when oil was tapering off on hopes that the Middle East supply situation may actually normalize, we get this from The Guardian: "Saudi forces are preparing to intervene in neighbouring Bahrain,
after a day of clashes between police and protesters who mounted the
most serious challenge to the island's royal family since demonstrations
began a month ago. The Crown Prince of Bahrain is expected to formally invite security forces from Saudi Arabia into his country today, as part of a request for support from other members of the six-member Gulf Co-operation Council." Pretty mich just as we predicted earlier. And yes, this is huge as Iran will promptly respond, setting off dormant religious tensions with a bang.
TEPCO: With $91 Billion In Debt, Got CDS?
Submitted by Tyler Durden on 03/13/2011 20:45 -0500Now that the market has had some time to digest the events over the weekend, it may be time to hedge risk on the company most exposed to the nuclear shock in Japan, Tokyo Electric Power Company. The company was just downgraded by Goldman Sachs to Neutral (which means it held it as a Buy until now) as the firm does not see "a dividend hike"... We see far greater issues for the company's equity investors than just a dividend hike. Number one: TEPCO (9501.T) has over $90 billion in debt and roughly $30 billion in equity buffer. As Bruce Krasting points out vis a vis the equity - "it's gone." More from BK: "I used to work on financing these things. It's all long term leases. The actual debt behind the power plants is multiples of what they show on the balance sheet."
Latest IAEA Japanese Nuclear Power Plant Update
Submitted by Tyler Durden on 03/13/2011 20:09 -0500Based on information provided by Japanese authorities, the IAEA can confirm the following information about the status of Units 1, 2 and 3 at Fukushima Daiichi nuclear power plant.
Goldman On JPY Pairs: "Increased Intervention Risk In $/JPY"
Submitted by Tyler Durden on 03/13/2011 19:45 -0500"Increased volatility and a wider trading range from current low levels in $/JPY mechanically increases the likelihood of marking new record lows below 80. As seen in the past, this could lead to some disruptive price action. We doubt that the Japanese authorities would want to expose their economy to a potential exchange rate shock in addition to the earthquake. The authorities have already made clear that they will do their utmost to stabilise markets, and while the focus has been on liquidity interjections in local money markets, this commitment likely includes an FX intervention threat in case of disruptive $/JPY price action." - Thomas Stolper, GS
BOJ Injects Unprecedented 7 Trillion Yen In Money Markets As Tokyo Stock Exchange Circuit Breakers Activated
Submitted by Tyler Durden on 03/13/2011 19:27 -0500Contrary to expectations that the BOJ would injected "only" JPY2 trillion in its emergency operation earlier, Shirikawa came out with a stunner, putting in a whopping 7 trillion yen into Japanese money markets. From Reuters: "The Bank of Japan on Monday injected a hefty 7 trillion yen ($85 billion) into the money market in a same-day market operation aimed at soothing market jitters after a massive earthquake and tsunami hit northeastern Japan. This was the central bank's first so-called same-day operation since last May, when the Greek debt crisis roiled the global financial markets. BOJ Governor Masaaki Shirakawa said on Sunday that the central bank would provide huge amounts of liquidity to the banking system on Monday, reinforcing the bank's determination to keep markets stable in the wake of the disaster." In the meantime, after the Nikkei has plunged over 5%, and the Topix down by 7%, circuit breakers have been activated on the Tokyo Stock Exchange. Elsewhere, the US plunge protection is hard at work, sending futures surging from the overnight drop, after reality threatened to impose itself. Another masterful showing by Sack Frost.
Gold, Silver Surge At Open Of Electronic Trading
Submitted by Tyler Durden on 03/13/2011 17:14 -0500
As the dollar plunges (supposedly on news of that Frankenstein of a Euro treaty announced on Saturday morning and on capital repatriation in Japan) the real reason for the plunge can be found in the action of the precious metals, where both gold and silver are about to take out period highs on more imminent global fiat dilution.
Operation LeakS Bank Of America Fraud Disclosure To Hit At Midnight Eastern, 5 AM GMT
Submitted by Tyler Durden on 03/13/2011 16:32 -0500
Stock World Weekly -Shake-up & Change
Submitted by ilene on 03/13/2011 16:20 -0500Over time, it’s complacency that kills you...
Stunning New Footage Of Incoming Tsunami
Submitted by Tyler Durden on 03/13/2011 16:13 -0500
As per the BBC, newly emerged footage shows the force at which the tsunami struck Japan's coast. In the fishing port of Miyako, in Iwate prefecture, boats were overturned, while video from Kamaishi city shows cars being dragged down city streets by the water. Footage courtesy of TV Asahi.




