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

11/26/14

On Robinson Bradshaw's Robert Fuller November 17, 2008 defense of the Wells Fargo Wachovia merger

According to Robert Fuller's November 17, 2008 BRIEF OF DEFENDANT WACHOVIA CORPORATION AND OF INDIVIDUAL DEFENDANTS OPPOSING PRELIMINARY INJUNCTION, Robert Steel was the sole inside director of Wachovia Corporation, in which Mr. Fuller states;

"In the three-week period prior to October 3, Wachovia experienced an acuted liquidity crisis that, ...placed Wachovia on the brink of recievership." without disclosing Wachovia's Discount Window or TAF loans and available credit lines.

And "Without the Wells merger, Wachovia either had to pursue a sale of assets ... or go into FDIC receivership and suffer a complete and certain loss of its shareholders' equity." without disclosing Wachovia's Discount Window or TAF loans and available credit lines.

And "financial market participants, depositors, and other counterparties had begun refusing to deal with Wachovia" because Wachovia's Robert Steel, didn't disclose the firm's TAF loans and available credit lines.

And "The merger agreement had the desired effect of providing assurance to third parties that allowed Wachovia to obtain access to capital and recover stability" only because Wachovia's Robert Steel, the sole inside director of Wachovia Corporation, chose to not disclose the firm's TAF loans and available access to capital via Fed credit lines.

And "Despite diligent, persistent, and continuous efforts after the board meeting on September 16 to raise capital, sell assets ... Wachovia had been unable to reach any difinitive agreement with a third party that would allow Wachovia to resolve its liquidity issues and avoid FDIC receivership" after only borrowing $2.5 billion on September 11, 2008 from the TAF, with Unencumbered Collateral held with the Fed totaling $56.838 billion, representing a credit line worth tens of billions Robert Steel knew about.

And "as of the night of October 2-3, it was likely that Wachovia would not be able to fund normal banking activities going forward" after borrowing $5 billion for the TAF with $56.848 billion of Unencumbered Collateral held with the Fed on September 25, 2008.

http://www.ncbusinesslitigationreport.com/uploads/file/Wachovia%20PI%20Brief.pdf

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