This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

WikiLeaks vs. Bank of America

It annoys Assange that media outlets focus on any of that - or even question him at all. He would like to be thought of as an unorthodox journalist who's breaking the rules in the name of free speech and capitalism. Assange walked off the set of CNN when an interviewer inquired about the effects of his organization's leaks and gave lip to Larry King when asked about his personal life.

In the worst-case scenario for bank investors, Assange has got a data trove that threatens to take down not just one particular bank but cause a domino effect among any that have engaged in similar tactics. WikiLeaks is expected to release the information next year, which leaves plenty of time for speculation, fear-mongering, navel-gazing and leaks about the leaks.

In the best-case scenario, Ken Lewis' simply had a large, provocative iTunes playlist.

The outcome is likely to land somewhere in the middle, much like other scandals that have plagued big banks of late - from the SEC's investigation of Goldman Sachs (GS - Get Report) to more recent probes into foreclosure practices and worries about exposure to mortgage buybacks:

¿ A big announcement is made, with embarrassing and fearful disclosures.

¿ Big bank stocks - or just one in particular - will sell off.

¿ Speculative investors will make a killing shorting the stock while long investors sit on the sidelines, digesting information.

¿ There are investigations, hearings, statements and settlements.

¿ A few months later, when the stock's on the mend, investors will rib each other about a deal that belonged in the litter box.

It's Wall Street's cycle since the financial crisis began: Wash, rinse, repeat.

-- Written by Lauren Tara LaCapra in New York.



>To contact the writer of this article, click here: Lauren Tara LaCapra.

>To follow the writer on Twitter, go to http://twitter.com/laurenlacapra.

>To submit a news tip, send an email to: tips@thestreet.com.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BAC $15.56 -0.51%
GS $196.52 -0.74%
AAPL $132.65 1.82%
FB $81.91 0.47%
GOOG $555.37 -1.71%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs