Why We Doubt Assange Has Damaging Goods on BofA

| About: Bank of (BAC)

At CNBC, John Carney takes the side of the bet that Julian Assange has good dirt on Bank of America (NYSE:BAC) executives.

He reasons that Julian Assange wouldn't make it up that he has documents showing a culture of corruption at a major bank, which everyone knows is probably Bank of America.

Fair, but here's why we're skeptical.

  • Julian Assange isn't a great judge of the impact of his content. He thought the Cablegate material might be resignation-worthy for Clinton and Obama. Obviously nobody else does, and nothing in that dump has harmed the reputation of either in any meaningful way.
  • Banks don't do that much that's so outrageous. Ever since the crisis there's been an endless series of investigations into the major banks on some level or another. There's very little to show for it. The odds that Assange has something that all of these other entities missed (Congress, Cuomo, the SEC, various whistleblowers, etc.) seems remote.
  • Finally, the market doesn't buy it. When all else fails, go with the wisdom of crowds.

Have you see Bank of America's stock since the revelations came out on November 30?

Of course, there's some reason that Bank of America registered Brianmoynihanblows.com.

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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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