Hartzman versus Wells Fargo Advisors, Part One, including some emails from Rolling Stone's Matt Taibbi





I also believe "12 U.S.C.A. §5567 Consumer Financial Protection Act of 2010 (CFPA), Section 1057 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010" is also applicable to portions of this case.

 

It appears "The American Recovery and Reinvestment Act of 2009" (ARRA) may also apply.

The "secret loans" were from the Federal Reserve;

 

 

Wachovia's secret loans;

Wells and Wachovia's combined secret loans;

FYI From: Matthew Taibbi To: george hartzman
Fri, November 30, 2012 10:29:49 AM

George just FYI -- I've talked to several prominent securities lawyers and some former congressional aides and you will be interested to know that nobody knows the answer to whether or not the failure to disclose secret Fed lending constitutes an actionable violation.

The issue, it seems, has not come up before.

One former Senate aide put it this way:

"It certainly sounds like an omission of a material fact, but I doubt there's any precedent which establishes that it's a violation, especially when the Fed itself has a policy of keeping it secret (access to the Fed window undermines confidence in the bank)."
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Re: FYI

From: Matt Taibbi To: george hartzman

Ok we're getting warmer.

I just talked to one of the top securities lawyers in DC.

When asked if this is a material violation, he said "How could it not be?"

I want to show him an example of a bank that disclosed.

What was that NC bank again you mentioned?

Could you send me the 10K (if you haven't already)?

Sent from my iPhone
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Re: Another Broker From: Matt Taibbi To: george hartzman

George,

So I've been doing a lot of work on your stuff.

I had a conference call with Chase and a Treasury official on the disclosure issue. I also spoke with the former chief accountant of the SEC.

…In short the people who are more believable are in agreement with you.

The banks' argument is that the info is not material.

But my SEC guy does not agree.
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George, here's what my ex-SEC friends sent me:

http://gibsondunn.com/Publications/Pages/DisclosureConsiderationsInTurbulentTimes.aspx

http://www.sec.gov/rules/interp/33-6835.htm

...check the 1989 guideline out. The passage that's most relevant reads:

"If these or any other types of federal financial assistance have materially affected, or are reasonably likely to have a material future effect upon, financial condition or results of operations, the MD&A should provide disclosure of the nature, amounts, and effects of such assistance."
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From: Matthew Taibbi To: george hartzman

…You know that stock purchase of Dimon's you sent to me?

Do you have any other examples of him buying stock?

That particular purchase was a bit unique and hard to unravel legally.

They were preferred shares not sold to him by the company.

Our lawyers are a little weirded out by it.

How do I look up his other purchases?

I know I should know this -- it's embarrassing, but trust me, it will help.

Anyway, thanks again, and I'll talk to you soon,

Matt