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

2/22/15

How Warren Buffett's newspapers serve Warren Buffett instead of the truth, Hartzman edition

Warren Buffett owns about 9% of Wells Fargo through Berkshire Hathaway.

Berkshire Hathaway also owns the News and Record and the Winston Salem Journal.

I am suing Wells Fargo.

I was contacted on Tuesday by the Winston Salem Journal's Richard Craver on an article put up last night on the Journal's website, which was taken down after I contacted the News and Record in Greensboro's Jeff Gauger and the Journal's Managing Editor John Miller concerning how the story was innacurate and due diligence was not rendered by Richard Craver.

John Miller told me this morning the story will run tomorrow as is.
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from: Craver, Richard N. 
to: George Hartzman
date: Tue, Dec 9, 2014 at 7:12 PM
subject: What is at essence of your amended complaint?

Picking up wells response for story for Thursday and trying to avoid downloading the 144-page amended complaint for the sake of cost since we have reported your allegations already

Thanks

Richard Craver
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I responded to Richard with my phone number at 7:23 PM.

Richard Craver never called me, but asked "Please email your comments", none of which or the subjects of which were reported in the story taken down last night which included;

"...Former Wachovia CEO Robert Steel, with the help of former Goldman Sachs colleauge Peter Weinberg, misled Wachovia's board of directors to sell Wachovia to Wells Fargo for a $50 million commission of which Goldman Sachs recieved half of, without telling Wachovia shareholders of massive Federal Reserve credit lines, with the help of key Bush and Obama administration personel.

Wells Fargo CEO John Stumpf knew and went along with the merger, signing false SEC certifications in the process."

http://hartzman.blogspot.com/2014/12/too-connected-to-jail-short-short.html
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And;

"After paying Peter Weinberg's Perella Weinberg Partners $25 million and Weinberg and Steels' former employer Goldman Sachs $25 million to advise Wachovia on the merger with Wells Fargo, Steel became CEO of Perella Weinberg Partners in 2014, after which Plaintiff asserts Steel earned some of the money he allocated to Perella Weinberg Partners as Wachovia's CEO."

"On December 22, 2008, Wachovia borrowed $10 billion at 0.528% from the Federal Reserve for 17 days with $76.280 billion in Unencumbered Collateral representing an undisclosed credit line with the Fed more than six times the size of Wachovia's market capitalization, none of which was disclosed to Wachovia's shareholders or the public before, during and after the merger with Wells Fargo. (Loan maturity - January 8, 2009, after the merger)"...

http://hartzman.blogspot.com/2014/12/too-connected-to-jail.html
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After which I recieved:

"from: Craver, Richard N.

I can note what you have mentioned below in the update –all of which has been reported on before and did not seem, as far as I can tell, raise a legal red flag even after it was disclosed to Congress in 2010"
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And I replied;

"The size of the credit lines were never reported.

The only one was by bloomberg on Morgan Stanley that was about tapped out.

The Perrella/Goldman Sachs connection has not been reported.

The link to the entire Amended Complaint is at the post.

The bloomberg spread sheets didn't show the size of the credit lines

The fed spreadsheet only showed up in 2013 on the Fed's website.

The size of Wells Fargo and Wachovia's credit lines have never been reported.
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And;

http://www.journalnow.com/business/business_beat/wells-fargo-says-lawsuit-based-on-outlandish-conspiracy-theories/article_fa0105b4-808e-11e4-ae79-b3c7e18cf9e2.html

If this runs withouit taking note of the new news, you will have misled the public again.
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After which, I contacted Jeff Gauger;

from: George Hartzman to: Jeff Gauger

Once again, no direct contact with the reporter before he put this story up.

Ignored new news.

Ignored the Robert Steel connection.

I have not spoken to Craver.
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Craver shot back "We reported on the size of the credit lines with Wachovia in December 2010", which isn't true and I asked "where?" and "Could you call?" and;

"Did you go through the Amended Compliaint linked at the post?"

and "Where did you report the size of the credit lines?"

and "Have you reported Robert Steel was the only board member who actually worked at Wachovia?"

and "Have you ever reported the Steel connections to Wachovia's advisors?"

and "Are you going to report Steel is now the CEO of the firm he had Wachovia pay $25 million to?"

and "Are you going to call?".
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Craver's reply;

"Those interested in your amended complaint now know about it beyond your blog and can research it for themselves for your new allegations and evidence"
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from: Miller, John X. to: George Hartzman
date: Wed, Dec 10, 2014 at 6:12 PM

"Richard did talk with you about the story, though he didn’t call you. Nowadays, emails suffice and talking to a source."
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from: George Hartzman
to: "Miller, John X."   Jeff Gauger

He didn't report any of the new information I provided, nor did he seek any clarification of what he clearly doesn't understand.

Doesn't look like he went through the amended complaint.

He clearly didn't do much more than copy and paste prior work...

The prior suits said Wachovia ruined the company via poor decision making.

I am saying they had huge undisclosed Fed credit lines that if made public, would have saved the company.

I am saying Robert Steel bought stock, not sold it.

The emails below show I informed Richard of the information in September, including the still nationally unreported story of the credit lines;
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Craver;

"In February 2011, a N.C. Business Court judge dismissed two shareholder lawsuits against Wachovia, including one in Forsyth County, in which the plaintiffs claimed they were misled by management during the bank’s collapse...

In both lawsuits, the plaintiffs claimed Wachovia and executives were negligent and misrepresented the financial status of the bank, therefore breaching the duty of a corporate director or officer...
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An email "from: George Hartzman to: "Craver, Richard N."
date: Wed, Sep 24, 2014 at 10:06 AM
subject: Wells article

I am saying Robert Steel bought Wachovia stock knowing about the loans and the credit lines thinking he would make a profit.

Same with the execs at Wells Fargo.

The dismissed suits say execs sold stock knowing the company was in trouble.

I am saying the opposite.

If the markets knew about the credit lines and fed backing, I believe Wachovia would have made it."
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...from: George Hartzman to: "Craver, Richard N."
date: Wed, Sep 24, 2014 at 10:56 AM
subject: Re: Wells article

The Bloomberg story didn't disclose the "unencumbered collateral" held at the Fed which represented the credit lines.
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from: George Hartzman
to: "Craver, Richard N."
date: Wed, Sep 24, 2014 at 2:49 PM
subject: Re: Wells article

Are we going to speak before the story runs?
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from: George Hartzman to: "Richard N. Craver"
Jeff Gauger
mbanks
Joe Killian
Joe Gamm
ajohnson
Morgan Glover
Marquita Brown
Amanda Lehmert

Please tell me what's happening.

I Haven't Heard from anyone from the news and record on a story that is currently inaccurate.
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from: Gauger, Jeff
to: George Hartzman
date: Thu, Dec 11, 2014 at 10:27 AM
subject: RE: What's the plan?

George,
Your beef is with John Miller and Richard Craver, and it's with them you'll have to resolve it. You're not going to get coverage that makes your case for you. That's for you to do in court.
Jeff
Jeff Gauger
Editor and Publisher
News & Record | News-Record.com
Greensboro, N.C.

2 comments:

Hartzman said...

He didn't report any of the new information I provided, nor did he seek any clarification of what he clearly doesn't understand.

Doesn't look like he went through the amended complaint.

He clearly didn't do much more than copy and paste prior work;
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Craver September 24, 2014 article;

Hartzman said he worked with fiduciary responsibilities with Wells Fargo, as well as being a former shareholder and a client. He considers himself as a whistleblower.

...Hartzman said Wachovia and Wells Fargo executives "committed perjury" in the N.C. Business Court cases.

Craver December 10, 2014;

Hartzman, serving as his own attorney, said he worked with fiduciary responsibilities with Wells Fargo, as well as being a former shareholder and a client. He considers himself a whistleblower.

...Hartzman said Wachovia and Wells Fargo executives “committed perjury” in the N.C. Business Court cases.
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Craver September 24, 2014 article;

Though Hartzman said “total relief cannot adequately be currently determined,” he referred to a 2013 lawsuit he filed against Wells Fargo Advisors LLC in which he asked for relief of at least $31.1 million.

Hartzman likely faces a daunting challenge with his complaint.

Craver December 10, 2014;

Though Hartzman said “total relief cannot adequately be currently determined,” he referred to a 2013 lawsuit he filed against Wells Fargo Advisors LLC in which he asked for relief of at least $31.1 million.

Hartzman likely faces a daunting challenge with his complaint.
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Craver September 24, 2014 article;

Tony Plath, a finance professor at UNC Charlotte, estimated about $1 billion in shareholder value vanished in the Carolinas from the Wachovia collapse.

Craver December 10, 2014;

Tony Plath, a finance professor at UNC Charlotte, estimated about $1 billion in shareholder value vanished in the Carolinas from the Wachovia collapse.
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Craver 2008 article;

Wachovia's run as an independent bank ended in October 2008 after 129 years, even though it had been given 17 short-term emergency loans worth a combined $72 billion from the Fed's Term Auction Facility program.

And it took out $75 billion more after being taken over by Wells Fargo & Co., for a total of $147 billion in loans.

The loans were not made public at the time, but the Fed disclosed details about the program, as well as 10 other little-known loan sources, on Dec. 1 after Congress requested more transparency in financial markets.

http://www.richmond.com/business/article_54138a06-ac8c-55e5-9dc3-bc5fe6bc560b.html
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Craver December 10, 2014;

Hartzman responded to the Wells Fargo dismissal request with a 144-page amended complaint filed Dec. 3 that included documentation about Wachovia receiving 17 short-term emergency loans worth a combined $72 billion from the Federal Reserve’s Term Auction Facility program. It took out $75 billion more after being taken over by Wells Fargo for a grand total of $147 billion in TAF loans.

The loans were not made public at the time. In December 2010, the Fed disclosed details about the program, and 10 other little-known loan sources, after Congress requested more transparency in financial markets.

Hartzman said...

Craver September 24, 2014 article;

Hartzman accuses the banks of violating Sarbanes Oxley and Securities and Exchange Commission regulations, of not upholding their fiduciary responsibilities to shareholders, and committing acts of fraud in terms of financial reporting and disclosures.

...He claimed Wells Fargo "is currently defrauding and recommitting fraud on what appears to be hundreds of thousands of clients."

...In both lawsuits, the plaintiffs claimed Wachovia and executives were negligent and misrepresented the financial status of the bank, therefore breaching the duty of a corporate director or officer.

...Judge John Jolly agreed with the defendants that "North Carolina does not permit direct shareholder claims for losses resulting solely from a drop in stock value, and that the plaintiffs' injury was felt equally by all Wachovia shareholders ... and the corporation itself."

...Jolly also ruled the plaintiffs did not offer viable claims of negligence, misrepresentation and breach of corporate duties.

Craver December 10, 2014;

Hartzman accuses the banks of violating Sarbanes Oxley and Securities and Exchange Commission regulations, of not upholding their fiduciary responsibilities to shareholders, and committing acts of fraud in terms of financial reporting and disclosures.

...He claimed Wells Fargo “is currently defrauding and recommitting fraud on what appears to be hundreds of thousands of clients.”

...In both lawsuits, the plaintiffs claimed Wachovia and executives were negligent and misrepresented the financial status of the bank, therefore breaching the duty of a corporate director or officer.

...Judge John Jolly agreed with the defendants that “North Carolina does not permit direct shareholder claims for losses resulting solely from a drop in stock value, and that the plaintiffs' injury was felt equally by all Wachovia shareholders ... and the corporation itself.”

...Jolly also ruled the plaintiffs did not offer viable claims of negligence, misrepresentation and breach of corporate duties.