Mr Cooper Group Inc (COOP)

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Weaky leaking on Wall Street

Nov. 30, 2010, 11:21 a.m. EST

Commentary: The bar is high for WikiLeaks shocking us about banks


NEW YORK (MarketWatch) — WikiLeaks, fresh off embarrassing international diplomats and U.S. intelligence officials, is poised to take on another choice target: a major U.S. bank.

The organization, led by Julian Assange, is warning that it will release confidential documents from a large U.S. bank next year, according to a report in Forbes. Read pulse on Forbes report and MF Global analysis.

The panic already is already palpable. A report from MF Global downplays the final impact of any major leak, but warns that until the information is made public, there will be an overhang on the financial sector.

There shouldn’t be, for two reasons.

First, judging by the impact of previous disclosures, the worst that comes is embarrassment and minor tension. WikiLeaks’ disclosure of more than 200 cables on Sunday made headlines, but other than some apologetic phone calls from U.S. officials, stern rebukes, political posturing and spin, what’s the net result? Not much.

Secondly, Wall Street isn’t the Vatican. There isn’t much of a reputation to diminish. Sure, some documents may lead to investigations and denouncements. It may require bank CEOs to issue apologies. But really, what can shock us now? Mortgage fraud? Government influence? Hiding bad assets? Affairs? Name-calling? Market manipulation? Influence peddling?

Bank of America Corp. Citigroup Inc. and Goldman Sachs Group Inc. haven’t needed any help creating their own embarrassments.

Like previous WikiLeaks “bombshells,” pulling the covers off a big bank won’t have the effect Assange’s hype would suggest. Does WikiLeaks make a mark? Sure. It colors in our existing perceptions and adds details, vindicating our assessments. But barring something extreme — a level Assange has failed to reach, should Wall Street really be worried?


http://www.marketwatch.com/story/whos-afraid-of-wiki-ing-wall-street-2010-11-30