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1/3/15

Wachovia, Wells Fargo and AIG

Wells Fargo Unencumbered Collateral
as of September 11, 2008 to December 4, 2008 = $47.965 Billion
pledged to the Federal Reserve - borrowed capital

Wells Fargo borrowed $2.500 Billion as of October 3, 2008
from the Federal Reserve
.
.
Wachovia Unencumbered Collateral
as of September 25, 2008 to October 23, 2008 = $56,848 Billion
pledged to the Federal Reserve - borrowed capital

Wachovia borrowed $12.500 Billion as of October 23, 2008
.
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$47.965 Billion + $2,500.00 borrowed = $50.465 Billion Wells Fargo total outstanding borrowing and Unencumbered Collateral

$56,848 + $12.500 Billion = $69.348 Billion Wachovia total outstanding borrowing and Unencumbered Collateral
.
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$50.465 Billion + $69.348 Billion = $119.813 Billion borrowed by Wells Fargo and Wachovia
.
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"On September 16, 2008, ...the Federal Reserve Board, with support of Treasury, authorized FRBNY [Federal Reserve Bank of New York] to lend up to $85 billion to the firm under Section 13(3) of the Federal Reserve Act.  Despite this initial Government assistance..."

http://www.sigtarp.gov/Audit%20Reports/Factors_Affecting_Efforts_to_Limit_Payments_to_AIG_Counterparties.pdf
.
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"The United States Federal Reserve Bank stepped in, announcing the creation of a secured credit facility of up to US$85 billion"

http://hartzman.blogspot.com/2014/12/aig.html
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Wells Fargo maintains the government did not provide financial assistance to Wachovia or Wells Fargo, yet the initial government assistance to AIG was $85 billion, while the Unencumbered Credit pledged and borrowed capital to the Fed by Wachovia and Wells Fargo after the merger was announced totaled combined credit lines and borrowing was $119.813 Billion, larger than the initially announced credit line created for AIG.

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