BOFI is regulated by banking regulators and audited by them annually. They have external auditors as well. They have very good financials and a recent purchase or HR Block. HR Block will add additional earnings that were not in previous years numbers. Look for BOFI revenues and earnings to accelerate strongly. These shorters and this ex employee should look for a company to attack that has declining #s just my opinion. I really do not care what the ex employee thought or saw as long as the external auditors and bank examiners aren't finding internal control issues and asking for higher reserves which would effect their #s going forward. Follow companies with positive earnings and revenue growth. Shorters in BOFI to get squeezed in short order.
Banks are heavily regulated. They inspected and audited from the outside auditors on a regular basis. Internal auditors leave for various reasons at all big firms. I like the answer about the Ball departure. So this story is about one disgruntled employee you can find those at every publicly traded company. The OCC had no findings. If anything I have decided this bank is well run. Conference call revealed no mortgage loans with loan to value greater than 80%. Impressive.