One who intends to leave others better off for his having existed.

12/8/14

Wachovia CEO Robert Steel False Certifications and Zion Bank's fine filing, with some Matt Taiibi

As confirmed by Federal Reserve Public Affairs officer Cecelia Bradshaw on November 20, 2014, the Board of Governers of the Federal Reserve System (Fed) posted details of Wachovia and Wells Fargo's Term Auction Facility (TAF) loan Unencumbered Assets, representing Fed credit lines available to the two banks in 2008 and 2009 on August 2, 2013.

http://www.federalreserve.gov/newsevents/reform_taf.htm

According to the Fed as of August 2, 2013, on 3/27/2008, Wachovia borrowed $3.5 billion from the Fed's Term Auction Facility, representing a material 6.52% of the company's market capitalization, according to Bloomberg News.  According to the Fed, Unencumbered Assets representing Wachovia's credit line was $53.652 Billion on 3/27/2008.

According to the Bloomberg News, on 6/30/2008, Wachovia's outstanding Federal Reserve provided Term Auction Facility borrowings totaled $10 billion, representing a material 29.82% of the company's market capitalization.

http://www.bloomberg.com/news/2011-12-23/fed-s-once-secret-data-compiled-by-bloomberg-released-to-public.html

A search by Plaintiff of Wachovia Corporation's form 10-Q for the quarterly period ended June 30, 2008, listing North Carolina as the "State or other jurisdiction of incorporation or organization", certified pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002 by ROBERT K. STEEL on August 11, 2008, does not disclose the type, terms, interest charges, dates, collateral, values or amounts of financial assistance provided by the Fed and other material terms, and has not been restated since.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=6092516

On July 22, 2008, Mr. Steel personally purchased 1,000,000 shares of Wachovia’s stock as the company’s undisclosed Federal Reserve Term Auction Facility (TAF) borrowing reached $12.5 billion, representing a material 34.85% of the company's market capitalization.

In an interview with CNBC's Jim Cramer On Monday, September 15, 2008, Steel said "I think it's really about...transparency. People have to understand the assets and really be able to say, this is what I own... Complete disclosure. ...we can work through this with transparency, liquidity and capital. ...Our strategy was to give you all the data so you could make your own model.  We tell you what we're doing... ...we're raising capital ourselves by basically shrinking the balance sheet, cutting the dividend, cutting expenses. We can create more capital ourselves that way... for now, we feel like we can work through this..." After Jim Cramer asked "Should there be any sort of quick regulatory relief from the SEC that would make life easier to be able to make your bank much stronger?", Mr. Steel responded "I don't think it's about my bank."

On 9/25/2008, when Wachovia borrowed an undisclosed $5 billion from the Fed's Term Auction Facilty, Unencumbered Assets, representing the Fed credit line available to Wachovia was $56.848 Billion, according to the Fed. The $12.5 billion outstanding borrowings by Wachovia on 9/25/2008 represented a material 42.26% of the companies market capitalization, according to Bloomberg News.

A search by Plaintiff of Wachovia Corporation's form 10-Q for the quarterly period ended September 30, 2008, listing North Carolina as the "State or other jurisdiction of incorporation or organization", certified pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002 by ROBERT K. STEEL does not disclose the type, terms, interest charges, dates, collateral, values or amounts of financial assistance provided by the Fed and other material terms, and has not been restated since.

http://www.taxpayer.net/user_uploads/file/Bailout/BankBios/WellsFargo/Finance/WACHOVIACORP%2010Q%203rd%20qtr%202008.pdf

After not reporting TAF loans, Wachovia's CEO wrote "I, Robert K. Steel, certify that:  I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 of Wachovia Corporation;  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report" on October 30, 2008."

On October 30, 2008, Wachovia CEO Robert Steel falsely certified Wachovia's Quarterly Report as of September 30, 2008, as the $12.5 billion borrowed by Wachovia on 9/30/2008 represented a material 165.43% of the companies market capitalization, according to Bloomberg News.
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Wachovia's stock price on date of first TAF loan: 3/27/2008 - Last Trade: 27.07

Wachovia price on date of completed merger with Wells: 12/31/2008 - Last Trade: 5.54

As of January 31, 2008, there were 1,981,983,990 Wachovia shares outstanding.

27.07 - 5.54 = 21.53 x 1,981,983,990 = $42,672,115,304.70 Wachovia market capitalization lost between the first undisclosed TAF loan and Wells Fargo merger.
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On January 1st, 2008, Plaintiff had 60.9586 Shares/Units of Wachovia Stock Non-ESOP the company's ERISA governed 401(k) savings plan with a Beginning Balance of $922.01, losing $267.04 by March 31, 2008.

From January 1st, 2008 to March 31, 2008 Plaintiff contributed $207.21 to Wachovia Stock Non-ESOP leaving an Ending Balance of $862.18 and 79.3237 Shares/Units

Plaintiff's Wachovia Stock Non-ESOP Ending Balance on June 30, 2008 was $618.68 with 96.7049 Shares/Units after contributing $146.67, losing $390.17.

Plaintiff's Wachovia Stock Non-ESOP Ending Balance on September 30, 2008 was $243.68 with 128.7342 Shares/Units after contributing $152.25, losing $390.17.

Plaintiff's Wachovia Stock Non-ESOP Ending Balance on December 31, 2008 was $755.39 with 248.9493 Shares/Units after contributing $354.74, earning $156.97.

From January 1st, 2008 to December 31, 2008, Plaintiff began with $922.01 of Wachovia Stock Non-ESOP, contributing $860.87 for a total of $1,782.88 in principal, for a loss of $1,027.49 in 2008.
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Zions Bancorporation's fiscal year ended December 31, 2008 form 10-k states; "In December 2007, the Federal Reserve Board announced a new program, the Term Auction Facility (“TAF”), to make 28 day loans to banks in the United States and to foreign banks through foreign central banks. These loans are made using an auction process. Zions Bank is currently participating in the TAF and may continue to do so as long as money can be borrowed at an attractive rate.  The amount that can be borrowed is based upon the amount of collateral that has been pledged to the Federal Reserve Bank.  At December 31, 2008, $1.8 billion in borrowings were outstanding under this program as compared to $450 million at December 31, 2007.  However, by February 13, 2009, the TAF borrowings outstanding had been reduced to $500 million.  At December 31, 2008, the amount available for additional Federal Reserve borrowings was approximately $4.3 billion, which had increased to $5.7 billion by February 13, 2009. An additional $1.3 billion could be borrowed at December 31, 2008 upon the pledging of additional available collateral.

At December 31, 2008, the Company’s subsidiary banks had a total of $13.1 billion of immediately available, unused borrowing capacity at the Fed and various FHLBs, which had increased to $14.3 billion as of February 13, 2009."

http://www.sec.gov/Archives/edgar/data/109380/000119312509040927/d10k.htm
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On discovering whether or not the failures to disclose were actionable violations;

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)?
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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
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Wells Fargo refused to provide information concerning Envision plans created by William Spivey and Envision plans supervised by William Spivey and Aaron Landry

http://hartzman.blogspot.com/2014/11/wells-fargo-refused-to-provide_25.html

Wells Fargo refused to provide information concerning Brian Mixdorf's internal investigation into George Hartzman's Ethics Line filings

http://hartzman.blogspot.com/2014/11/wells-fargo-refused-to-provide.html

ROBERT K. STEEL and the President's Working Group

http://hartzman.blogspot.com/2014/11/robert-k-steel-and-presidents-working.html

Wachovia CEO Robert Steel False Certifications and Zion Bank's fine filing, with some Matt Taiibi


http://hartzman.blogspot.com/2014/11/18-us-code-1343-fraud-by-wire-radio-or.html

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