A Stonewalling Session with Brian Moynihan, CEO, Bank of America

Brian Moynihan, Bank of America’s chief executive officer, just filed his deposition with the court in late November. I’ve read eerily similar transcripts in mobster cases. Is there a Guinness World Record for the most stonewalling? Moynihan has to be right up there with the best.

Bank of America acquired Countrywide Home Loans after MBIA, Inc. filed a lawsuit against Countrywide for issuing bad mortgages that resulted in huge financial losses. MBIA claimed Countrywide misrepresented loan quality, persuading them to insure the junk loans. Soon enough, the loans had MBIA shoveling out billions in insurance claims, resulting in MBIA sinking from a AAA ranking to near bankruptcy.

Bank of America fought to block Brian Moynihan’s deposition, but in May MBIA put the CEO under oath. The only problem is, Moynihan is having memory issues. According to the deposition released on November 25th, Moynihan cannot recall anything about Bank of America’s multi-billion dollar acquisition of Countrywide. Anything. According to a statement by Moynihan, “I don’t recall.”

Much like Richard Nixon, appearing deceitful and dishonest, when bank executives are put on the spot and answer “I don’t recall,” they look like fools. It is of course possible Moynihan has no recollection regarding Countrywide, but should a man with such a severe memory deficiency be serving as CEO of one of the largest banks in the nation?

Hopefully some Bank of America employees possess enough evidence to convict Mr. Moynihan, but this won’t repair the damage caused to homeowners who have lost everything as a result of the bank’s fraudulent behavior. The original source of the corruption in the Bank of America hierarchy is still not clear. Meanwhile, Bank of America will have to continue defending itself in actions brought by wronged homeowners and the government.

Why do we tell this tale? Because our law firm is here to represent victims of banking fraud and whistleblowers who have information on false practices and financial corruption. Remember, whistleblowers can collect up to 30% of what the government recovers in a settlement of verdict. Similar whistleblower awards are also available from the SEC and IRS.

Think you have a claim? To learn more about foreclosure fraud and lender liability issues, contact attorney Brian Mahany at [hidden email] or through his direct line at (414) 704-6731 for a no obligation, strictly confidential discussion of your case.

Related topics: Bank of America (7)