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Wells Fargo & Company Wells Far Message Board

  • mr.schnider mr.schnider Sep 4, 2010 1:01 PM Flag

    Banktown

    Yesterday I read a couple chapters from the new book Banktown. It pretty much tells the story of the growth of Bank of America and Wachovia.

    I found out that Ken Lewis was not the heir apparent during Bank of Americas growth. Not only did the chosen person die of cancer, but when Nations bank merged with BankAmerica to become the behemoth Bank of America... the leader of Nations bank led initially and the agreement was to be for him to retire and hand over the reigns to the leader of BankAmerica.

    Well the merger took place the last day of the quarter 9/30th and the "new Bank of America" reported earnings 2 weeks later 10/14th. Get this, BankAmerica had lost $370million that quarter by investing into a hedgefund and no one took the effort to inform the board of directors or stock holders prior to voting on the merger!!! Sound familiar?

    Six days later the heir apparent to take over the reigns, BankAmerica CEO, was forced to resign (with $5M annual parachute) and the new Bank Of America was fined by the SEC for $330million dollars for not informing stockholders of the .

    Ken Lewis subsequently became the next CEO.

    My, my, my talk about a snoot full of scary craziness.

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    • Buy the iPad kindle app. Or, it may even be free. Then you can get anything on Kindle to your iPad! I don't have one yet but a guy at work does and loves the ability to read books distributed by Apple, Amazon, Barnes & Noble ( another reader app to acquire ) and Borders ( probably a 3rd app ).

      You might have trouble tracking where to find the book that you want to read. But, I am told that the process of getting the apps and books for them is really simple and uncomplicated.

      Good luck with it and please let us ( me ) know how this works out. I'm waiting for the January version of the iPad before I take the plunge. Multi-tasking, camera(s) and much more memory ( 1 GB ) are rumored to be part of that release.

    • I imagine its a bit of a problem pulling the boat into the nearest B&N. Maybe it will get picked up by Apple within the next two months. Have a safe trip.

    • Bridge, he probably has "born to lose" tattooed all over.

      When someone dreams up a fantasy like he did and started out with that fantasy by talking to the SEC (according to him) for 75 minutes you know there is something going on.

      Then he started posting his garbage on the WFC yahoo board and nothing has changed. All he has done since he began posting is attack other posters on the forum. He has nothing to offer that is factual or has to do with WFC.

      All his post are about Gus, his huge ego, and the fantasy he created in his mind.

      It is obvious he reads this forum to see who post and what they are saying.

      Regards,

      gillie

    • I'll have to look for that Book , I wonder if I can download from Ibooks to my Ipad? ok off to Saudia Arabia next week for a 2 month Job./ Remind Congress or who ever no Fighting around Quwait or Iran please ....

    • test test

    • Congress was going to pass TARP, but a presidential candidate left his campaign to put his full effort into stopping it. Subsequently the deal fell through and TARP initially was voted down, Thursday afternoon 9/25/08, subsequently after the market was closed that day the FDIC closed down WAMU.

      So as I'm reliving this drama I'm thinking : Wow, I bet the senators had a lot to chew on. All those people losing jobs in certain states, I am sure those senators must have been pushing for TARP. State represenatives usually try to be pragmatic in spending tax money or giving tax breaks to companies to create or keep jobs within their district, therefore you'd imagine "all politics being local" that North Carolina congressmen would have voted to pass tarp.

      When TARP failed to pass, the next day, Friday 9/26/08, WB lost $5B in deposits and saw their pps drop to $10 and FDIC advised WB they were going to get seized Monday. So that Weekend was pretty intense negotiations with Citi and Wells.

      The author of BANKTOWN writes of that final weekend for Wachovia:

      <<<Over the weekend, Paulson had signaled to lawmakers that a major bank was about to go down. Even on Monday, after the Wachovia news, members of Congress didn't seem to grasp the financial system's troubles, Paulson felt. Wachovia's lobbyists had worked with the industry's trade associations to press North Carolina lawmakers to support the bill, arguing its importance for all financial institutions but not letting on to Wachovia's particular problems. The bank's lobbyists knew Wachovia faced a critical situation but weren't privy to the negotiations in New York. They also didn't want to highlight Wachovia as a troubled bank.
      "We need to go back to the drawing board and come up with other solutions," said Charlotte Rep Sue Myrick after voting against the bill. In a 2010 interview, she said she didn't recall being lobbied to bote for the bill over the weekend and said she had concerns when Paulson wouldn't explain how he planned to spend the TARP funds.>>>

      • 1 Reply to mr.schnider
      • This totally blows my mind to find out that lawmakers from North Carolina voted against TARP. Personally I am torn on whether or not we should have done TARP. It would have taken savvy leadership to instill confidence into the financial system without it. Having said that I don't begrudge any lawmaker for voting to save a "crown jewel" of their own state. Just think of the thousands of voters in North Carolina that lost their jobs because TARP wasn't past in time.

        Now before you disagree with me about saving WB, Steel says in the book they only needed $15B to $20B!!

    • that is interesting, I will look forward to reading the book also. FWIW, I never thought Hugh McColl planned to retire or play second fiddle once he bought Bank of America, and merged it with Nationsbank. I always had the idea it was his deal.

      As regards Ken Lewis, I remember when he succeeded HMcC. He was from the retail side if I recall correctly, and did not like Investment Banking one bit. His relationship with the IB'ers was not good. There was a distinct shift in the bank when he took over, from being a strong corporate bank to being a retail bank.

 
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