NEW YORK, July 21 /PRNewswire/ -- Dear Bank of America Corp. Board of Directors: On February 4, 2008, we sent you a detailed letter, a copy of which can be found at http://www.post233.com/, outlining how Bank of America Corp. ("BOA", NYSE: BAC) assisted its client Fairfax Financial Holdings Ltd. ("Fairfax ", NYSE: FFH) in an offshore tax avoidance transaction (the "Transaction") that deceived the public markets and deprived the U.S. Government of hundreds of millions of dollars in owed corporate tax. We received a written reply, dated February 20, 2008, from your Deputy General Counsel William C. Caccamise who declined to respond citing a company policy whereby, "Bank of America does not discuss, or comment on, client transactions or relationships." Aside from its utter lack of sincerity, this response is troublesome given Mr. Caccamise's intimate involvement in the very same Transaction that was the subject our February 4th letter. Indeed, the original Transaction documents show Mr. Caccamise as authorized signatory on the Master Note Purchase Agreement, Pledge Agreement and Note Purchase Confirmations #1 and #2 executed March 4, 2003 on behalf of two BOA subsidiaries, Bank of America Securities, LLC and NMS Services Cayman, Inc. It strains credulity to believe that the person who signed onto this problematic Transaction on behalf of BOA can impartially assess the propriety of BOA's actions. Aside from this issue, the February 20, 2008 reply fails entirely to discharge BOA's obligations of candor and truthfulness to the market. As we set forth in our original letter, BOA's participation in the Transaction has had damaging effects far beyond the scope of a single "client relationship." For instance, as part of its participation in the Transaction, BOA has failed to disclose (a) its short position in 25% of Odyssey Re's ("Odyssey", NYSE: ORH) public float as required by NYSE Rule 421, (b) the manner in which it borrowed and maintained this short position for 3.5 years, (c) the size and timing of all Odyssey share purchases made by Fairfax on behalf of BOA in the four months leading up to Fairfax's December 2006 sale of 10.1 million Odyssey shares and (d) how the Transaction resulted in BOA owning 2.9 million Odyssey shares worth $103 million, when it took no risk, spent no money and received over $10 million in fees.(1) We find it contradictory, given BOA's "policy" of allegiance to its clients, that it would hide much of this material information while issuing over $1.2 billion of Fairfax related debt and equity securities to its other clients during the 24 months following the Transaction. The U.S. Senate Permanent Subcommittee on Investigations' issued a Staff Report on Tax Haven Banks and U.S. Tax Compliance on July 17, 2008 stating that "each year, the United States loses an estimated $100 billion in tax revenues due to offshore tax abuses ... A related issue is the extent to which financial institutions in tax havens may be facilitating international tax evasion." BOA's assistance in the misappropriation of over $400 million U.S. tax dollars, in this case by a Canadian corporation on the brink of financial collapse, is a very public, regulatory issue. Fairfax and BOA have repeatedly rebuffed our requests for disclosure on numerous critical aspects of the Transaction. We once again urge you to fulfill your obligation as Board members by independently investigating the impropriety of this transaction and remediate the ongoing disclosure deficiencies. INSTITUTIONAL CREDIT PARTNERS LLC Sincerely, William F. Gahan (1) BOA did not own the Subject Stock prior to the Transaction. Instead it borrowed and sold the shares in an undisclosed short sale to Fairfax. In November 2006 BOA exercised its rights to exchange $68.1 million face value of notes for 2.9 million shares of Odyssey stock worth $103 million. Fairfax US returned these shares to BOA and BOA was expected to return them to the original lenders. However, the Transaction inexplicably resulted in BOA reporting to own 2.9 million Odyssey shares as of year end 2007, 1,741,000 of which have been sold as of March 31, 2008. DISCLOSURE: Institutional Credit Partners, LLC ("ICP") and its affiliates hold investments from which they will profit in the event of a decline in the creditworthiness of Fairfax and/or Odyssey. ICP may change its investments from time to time, including the extent nature and form of these investments. However, ICP anticipates holding, for the foreseeable future, investments whose value will increase in the event of a decline in the creditworthiness of Fairfax and/or Odyssey. ICP has made and will continue to make these investment decisions on the basis of its analysis, beliefs, and assumptions that it believes to be reasonable. Any statements contained herein are intended solely for informational purposes. All allegations concerning any individual or entity are just that, allegations, until proven in a court of law. The reader is directed to the source documents to confirm all statements contained herein. DATASOURCE: Institutional Credit Partners, LLC CONTACT: Pen Pendleton, of Institutional Credit Partners, LLC, +1-212-371-5999 Web site: http://www.icpcapital.com/ http://www.post233.com/

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