Full report below, but first some background…

First from Business Insider…

Here’s That Devastating Report On Bank Of America That Everyone Is Talking About Today

Editors note: This was originally published yesterday, but continues to get plenty of attention today, and was just referenced by David Fasber on CNBC. Without further ado...

Earlier, we wrote about Felix Salmon’s contention that there’s a new mortgage fraud scandal that has the potential to dwarf Goldman’s ABACUS dealings. In this fraud scenario, banks took advantage of their information advantage and sold CDOs with mortgages they knew to be bad without clear representation to investors.

In August, Manal Mehta and Branch Hill Capital put together a presentation targeting Bank of America’s potential exposure to this mortgage fraud, as well as other problems in the mortgage market.

The presentation comes to a pretty damning conclusion: Bank of America’s exposure could nearly halve its share price.

Read more: http://www.businessinsider.com/bank-of-america-mortgage-report-2010-10#ixzz12dvMtRAf

Then we have the spin zone…

CNBC

Sorry Folks, The Put-Back Apocalypse Ain’t Gonna Happen

You should probably be a buyer of Bank of America right now.

But Bank of America’s recent decline—down almost 10% this week—is driven by fears that the bank could be hit with huge liabilities for faulty mortgage pools. And I’m pretty sure that is not going to happen.

Why not?

Because the politicians will not let the financial stability of the largest bank in the nation be threatened by contractual rights. Not when there’s an easy fix available that won’t cost taxpayers a dime.

Here’s what is going to happen: Congress will pass a law called something like “The Financial Modernization and Stability Act of 2010” that will retroactively grant mortgage pools the rights in the underlying mortgages that people are worried about. All the screwed up paperwork, lost notes, unassigned security interests will be forgiven by a legislative act.

There’s a big difference between the financial crisis of 2008 and the new crisis. In 2008, banks were destabilized by the growing realization that they were over-exposed to the real estate market. Huge portions of their balance sheets were committed to mortgage-linked investments that were no longer generating the expected revenues or producing losses. That was a problem of economics that could only be solved by recapitalizing banks or letting some of the biggest banks in the U.S. fail.

The put-back crisis is not driven by economics. It is driven by legal rights. And there’s simply zero probability that the politicians in Washington are going to let Bank of America or Citigroup or JP Morgan Chase fail because of a legal issue.

So here’s what I expect will happen. The lame duck session of Congress will pass a bill that essentially papers over the misdeeds of the banks that originated mortgage securities. Every member of Congress and every Senator who has been voted out of office will cast a vote for the bill. And the President will sign it.

You can check out the rest of this along with comments here…

If the latter is what comes to be, am I terrified on what the repercussions will bring…

There will be no rule of law left in America.

If wall street does not have follow the law, why should main street?

We are in critical times here folks…

Oh, and one more thing.

How do you defraud the investor without defrauding the borrower?

They were both sold an empty box…

Full report below…
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4closureFraud.org

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CONFIDENTIAL REPORT

Mortgage Repurchases
Bank of America’s Hidden Liability