George Hartzman commented on the blog post Group Launched to Support WikiLeaks, Transparency Journalism Reports Incredible Success
I believe Wachovia CEO Robert Steel bought Wachovia’s stock in a breach of trust, confidence and his fiduciary duty to shareholders, US taxpayers and our legal system, while in possession of material, nonpublic information.
On July 9, 2008, Robert Steel became president and CEO of Wachovia after working for Goldman Sachs from 1976 to 2004 and the US Treasury under former Goldman Sachs CEO Henry Paulson from October 10, 2006 until July 9, 2008. Mr. Steel was “the principal adviser to the secretary on matters of domestic finance and led the department’s activities regarding the U.S. financial system, fiscal policy and operations, governmental assets and liabilities, and related economic matters,” according to Wikipedia’s biography. Mr. Steel most likely knew about other firm’s borrowings via his time spent at the U.S. Treasury Department.
In 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.
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…” on October 30, 2008.
Mr. Steel was at least aware of Wachovia’s Federal Reserve loans since July, 2012, if not the undisclosed loans to multiples of other financial institutions, and no one wants to do anything about it.
If Mr. Steel is not charged by July 2012, he will get away with it, as the statute of limitations will run out.
Greensboro, North Carolina
I believe most Wells Fargo Advisors Envision financial/investment plans created to earn ‘retention’ bonuses appear to have defrauded the government after Wachovia and Wells Fargo merged while in possession of taxpayer funded TARP and other bailouts. I believe Wells Fargo executive management defrauded the government by creating a illegal path to retain advisers after receiving government bailouts, by mandating a fraudulent path for advisors to acquire retention bonuses. I believe Wells Fargo’s executive management created a backdoor retention program that led thousands of brokers to violate fiduciary duties to the firm’s clients, by incentivizing the omission of investment fees in Envision plans subsequently reported on client statements.
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