I will deliver the following letter to the manager of the local branch of Wells Fargo at 3 pm today as my personal contribution to the #occupycharleston effort, for which I have functioned as a legal advisor. Nothing illegal is planned at the bank. I am a licensed member of the SC Bar. However I will meet with anyone present on the sidewalk before going in and later at #occupycharleston's camp at Brittlebank Park, where I will be spending the weekend.
Very little has been said in the 99% / Occupation movement about the carelessness with which the powerful have dealt with the savings and investments of the middle class and working investors. In this case many of the most prominent people in Charleston saw tens of thousands of dollars in investment value in Wachovia Bank destroyed. It was finally bailed out with a federally subsidized sale to Wells Fargo which is now making billions in profits. To the best of my knowledge noone connected with the failure of Wachovia faces any criminal charges and I'm unaware of any forceful investigation which may have been conducted.
The letter follows in the main body of this post. I've also provided it in PDF.
Letterhead, Hamilton Law Office, Charleston, SC
PDF Version in Google Docs
Mr. John G. Stumpf
President, Chairman & CEO
Wells Fargo
Re: Wachovia Stock
Dear President Stumpf,
Several years ago, I was a stockholder of Wachovia. My father purchased the stock before his death and I inherited it, intending to retain its value as a legacy for my son. My father survived the great depression and was determined to be sure that none of his family would ever know want or need such as he saw in his childhood. He dovoted a lifetime of determined work to that cause and by the time of his death, I was fortunate to be a member of the top 1% of Americas in property owned.
I do not see what I have been given as something I have the right to consume. I live modestly and am fully aware that the real value of money is the freedome it provides a person to concentrate on the things which really matter in life, against which need and poverty are an overwhealming distraction. I write. My wife plays Motzart. We both work full time. We have a comfortable, paid for home in Mount Pleasant. Our lives are good.
When the value of the Wachovia Stock began to fall, I consulted with experts in the investment industry who advised me to hold it and wait for a recovery. When it had finally fallen by 70% I decided to ignore them and issued an order to sell. If finally became nearly worthless. I have since divested myself of all financial stocks which my father had considered amoung the safest of investments.
It is my understanding that the US Government provided billions of dollars in funding to enable Wells Fargo to purchase the assetts of Wachovia. This means that my family paid good money for stock which ultimately became worthless. The Federal Government gave your bank money to purchase this worthless bank after the investors had been wiped out. The LA Times reports, “Wells Fargo, the fourth-largest U.S. bank as measured by assets but the largest consumer lender, said Monday it earned $4.06 billion, or 72 cents per share, compared with $3.34 billion, or 60 cents per share, in the third quarter of 2010.” However your stock value is now falling as well. (Wells Fargo profit up, but stock falls as revenue slips, LA Times, October 17, 2011.)
At this point, I no longer hold stock in your financial institution; however I continue to maintain my Attorney’s Trust Account there. This is the account into which I deposit my client’s money from settlements and real estate closings. I have a fiduciary duty to my clients to be sure that Wells Fargo is being operated in a responsible fashion. The money is question now is not mine to lose.
Just prior to the collapse of Wachovia, its President appeared on SC ETV and described the condition of his bank as sound, a good investment. We now know those statements may not have been true. I can only speculate about his actual state of knowledge on that occasion.
I request your personal assurance, as a matter of individual moral and financial responsibility that your bank is currently solvent, sound and making a positive contribution to the prosperity of the nation. I cannot regard resort to the existence of federally guaranteed bank insurance, in and of itself, as an adequate response. You bank has grown to a size which makes it “too big to fail” which now means that if it does, it may precipitate a general failure both of the financial system and the value of the currency itself.
I would ask for an executive summary of the transaction between Wachovia, the US Government and Wells Fargo and any information on any criminal wrongdoing connected with the operation of Wachovia which may be in your possession.
I would also like an explanation about why you feel it is appropriate to be both the President and CEO of Wells Fargo and the Chairman of its Board, which would appear to severely dilute the checks and balances appropriate to governance of such a significant institution.
Hopefully this information will allow me to effectively determine if continuing to maintain my attorney’s trust account is your institution is appropriate.
Yours very truly,
William Hamilton